Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why You Pay More for Less the Decoy Effect
Ever noticed how a medium popcorn at the movies seems like a rip-off compared to the large? That's the decoy effect in action, and it's one of the most powerful pricing tools in behavioral economics. In this episode, Lucas and Luna break down how a simple pricing trick—adding a strategically inferior option—can nudge consumers toward pricier choices. They trace the effect from its famous 1992 Economist subscription study by Dan Ariely to its modern-day use in SaaS, subscription boxes, and even healthcare plan selection. You'll learn how Apple used a decoy in its 2018 iPhone…
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