I stumbled upon a fascinating concept known as the &quot;Decoy Effect&quot; in pricing psychology. After diving into an academic paper, I discovered that adding a deliberately overpriced third option in your pricing strategy can profoundly influence consumer choices. This &quot;decoy&quot; option isn&#39;t meant to be sold but to change how customers perceive the other two options. The real magic of the decoy effect is that it doesn&#39;t require more effort or changes to your offerings. It simply tweaks the perception of your existing options. I&#39;m now considering implementing this concept in my business strategies and believe it can be applied across various industries. Understanding consumer psychology in pricing can be a game-changer for businesses. 

Read the &quot;Adding Asymmetrically Dominated Alternatives: Violations Of Regularity &amp; The Similarity Hypothesis&quot;, academic paper, Graduate School of Business Administration, Duke University, Durham, North Carolina: https://apps.dtic.mil/dtic/tr/fulltext/u2/a101132.pdf

Read &quot;The Decoy Effect – Everything You Need To Know&quot;, written by Kristina Radova: https://insidebe.com/articles/the-decoy-effect/

Read &quot;How the psychology of pricing influences our choices&quot;, written by Jennifer Clinehens: https://medium.com/choice-hacking/how-the-psychology-of-pricing-influences-our-choices-84e9dc939e31

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#221 Psychology Of Pricing - The Decoy Effect

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