https://ad1tya-tech.pages.dev/tags/decoyeffect/ Recent content in Decoyeffect on My New Hugo Project Hugo en-us Mon, 22 Dec 2025 00:00:00 +0000 https://ad1tya-tech.pages.dev/posts/2025/12/2025-12-22-the-decoy-effect-how-to-use-useless-options-to-drive-revenue/ Mon, 22 Dec 2025 00:00:00 +0000 https://ad1tya-tech.pages.dev/posts/2025/12/2025-12-22-the-decoy-effect-how-to-use-useless-options-to-drive-revenue/ <h1 id="the-rational-shopper-myth">The Rational Shopper Myth</h1> <p>We like to believe we are rational. We think we judge a product&rsquo;s value based on its intrinsic worth. But behavioral economics tells us a different story: <strong>Humans are terrible at evaluating absolute value.</strong> We are only good at evaluating <strong>relative value</strong>.</p> <p>We don&rsquo;t know if a subscription is &ldquo;worth&rdquo; $50. We only know if it&rsquo;s &ldquo;better value&rdquo; than the $40 option next to it.</p> <h1 id="the-experiment">The Experiment</h1> <p>This phenomenon was famously demonstrated by Dan Ariely (author of <em>Predictably Irrational</em>) using an Economist magazine subscription offer.</p>