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The Incentives Lab
HBT-COG-0220 · Dimension COG · Cognition

Decoy Effect

Adding a clearly worse option steers people toward the option you wanted.

Decision Bias·Cognitive Bias·Grade B·draft· enriching…

Scientific Definition

Adding a clearly worse option steers people toward the option you wanted.

Plain-English Definition

Adding a clearly worse option steers people toward the option you wanted.

Feynman Explanation

The middle pricing tier exists to make tier three feel reasonable.

Core Principle

Adding a clearly worse option steers people toward the option you wanted.

Mechanisms

Psychological

Adding a clearly worse option steers people toward the option you wanted.

Behavioral Economic

Pending editorial review.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Pending editorial review.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

The middle pricing tier exists to make tier three feel reasonable.

Examples

Everyday
  • Three pricing tiers where the middle one is a setup for the top one.
Modern (Organizational)
  • Pricing pages, comp packages, and strategy options engineered around decoys.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Strip irrelevant options before deciding. Compare only what you'd actually buy.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
B (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
3 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
AI tool tiers designed to push you to the premium SKU.
Amplifying Incentives
Pricing pages, comp packages, and strategy options engineered around decoys.
Org Failure Modes
Pricing pages, comp packages, and strategy options engineered around decoys.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Strip irrelevant options before deciding. Compare only what you'd actually buy.
Diagnostic Questions
  • Strip irrelevant options before deciding. Compare only what you'd actually buy.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Strip irrelevant options before deciding. Compare only what you'd actually buy.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
AI tool tiers designed to push you to the premium SKU.
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-COG-0220 · COG
Decoy Effect
DEABAction BiasAHAffect HeuristicABAnchoring BiasDEDefault EffectEEEndowment EffectFEFraming EffectHDHyperbolic DiscountingIEIKEA EffectIBInformation BiasLOLaw of Triviality + …

Knowledge Graph Neighbors

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.