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Decoy effect

type: effect · origin: study · evidence: supported · themes: choices and costs

Claim assessed: A third option, clearly worse than one of the main ones, makes that one get chosen more often.

Published · how we work

In short

The decoy effect, also called the attraction effect, appears when you choose between two options that trade off: one is better but pricier, the other cheaper but weaker. If a third option is added that is clearly worse than one of them, but not than the other, the option that beats it gets chosen more often. The third option is the decoy. The effect is solid in experiments with numbers, but much weaker or absent with real products.

What it says

The original study. Huber, Payne and Puto (1982) set out to test a rule of rational choice theory: adding an option can’t make an existing option get chosen more often. They built decoys that almost nobody chose, about 2% of participants on average, and showed that the rule can be broken. We haven’t read the study; we describe it from the authors’ 2014 reply.

The limits. Frederick, Lee and Baskin (2014) noticed that almost all demonstrations described products only by numbers, for example a TV with picture quality 7.3 and a price of 390 dollars. In 19 studies with products that were tasted, touched or seen, from drinks and fruit to photos of apartment views, they never found the effect. Sometimes the decoy even reduced the choice of the option it was meant to help. With gambles, the effect appeared when the chance of winning was written as a percentage, but disappeared when the same chance was drawn as a slice of a circle. They also failed to replicate several famous studies, among them an example with subscriptions to a publication, popularised in a bestselling book.

Top: when the chance of winning was written in numbers, the decoy raised the choice of the target gamble from 21% to 37%; when it was drawn, the choice stayed at 34% and 35%. Bottom: the effect appeared clearly in 4 of 5 studies with options in numbers only, in 2 of 5 with numbers plus pictures or text and in none of 27 studies with products that were tasted, touched or seen. The decoy depends on how options look Frederick, Lee and Baskin, 2014 How often the target gamble was chosen study 2b, 791 people numbers, no decoy 21% numbers, with decoy 37% drawing, no decoy 34% drawing, with decoy 35% Studies where the effect appeared clearly by how the options were presented numbers only 4 of 5 numbers plus pictures/text 2 of 5 tasted, touched, seen 0 of 27 The decoy worked when options were in numbers; with products tried directly, it didn't.
Top: the share who chose the target gamble, with and without the decoy. Bottom: the number of studies with a significant effect, out of the 37 the authors grouped by how the options were presented.

The original authors’ reply. Huber, Payne and Puto (2014) answered that the effect replicates when the study’s conditions are reproduced, as the numeric gambles showed. They explained why the effect can disappear: people already have clear preferences, don’t notice that the decoy is worse, or even choose the decoy. In some of the criticised studies, up to 18% of participants chose the decoy. They acknowledged, though, that in its strict form the effect probably occurs rarely in the marketplace, where products have many attributes and clearly inferior options don’t last long on the shelf.

A large preregistered test. Hasan et al. (2025) tested the effect on 2,293 people, with over 22,000 choices between products such as apartments, laptops or paper towels. They varied how the options were presented: numbers or bar charts, their order and their layout. The effect appeared in 23 of 24 variants: the option helped by the decoy was chosen on average 1.5 times as often as the other. It was slightly weaker with charts than with numbers and weaker when the decoy wasn’t next to the option it helped. In every variant, though, the attributes were given explicitly.

Real purchases. Devine et al. (2025) analysed 3.6 million wine purchases from a UK supermarket chain. They compared pairs of popular wines, one better and pricier, the other cheaper and weaker, with quality estimated from ratings in the Vivino app. When the other wines on the shelf were, on average, pricier and weaker than one of the two, that wine was chosen slightly more often. The difference was about 1%. Among people who bought wine often, the effect almost disappeared.

Example

A cinema sells small popcorn for 10 lei and large for 18 lei. If it adds a medium portion, also for 18 lei but smaller than the large one, the large portion may look like a good deal. The example is an illustration, not a study cited here.

How to apply it

The steps below are a practical way to apply it that we propose, based on the studies cited.

  1. Set aside the clearly worse option. Then compare only the two options that trade off.
  2. Ask whether you’d choose the same without the third option. That is exactly the rule the decoy breaks.
  3. Decide in advance what matters to you. Huber et al. note that the effect shrinks when people already have clear preferences, and Devine et al. found it almost absent among frequent buyers.
  4. Don’t rely on decoys as a sales trick. In real wine purchases the effect was about 1%, and with products tried directly it didn’t appear.

Limits and nuances

Sources

See also: Anchoring, Default effect, Framing effect