Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Decoy Effect How a Third Option Changes Your Choice
Episode 46 of Behavioral Economics with Fexingo explores the decoy effect: how adding a third, deliberately inferior option can push you toward a more expensive choice. Lucas and Luna break down the classic Economist subscription pricing experiment that revealed this bias, then examine real-world examples from movie theater popcorn to airline fare tiers. They discuss why your brain falls for the trap—and how to spot it before you overspend. By the end, you'll recognize the decoy in your own decisions and learn a simple mental trick to defuse it.
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