The Decoy Effect
A deep dive into the psychological pricing trick that brands use to make you spend more money.
About this video
A deep dive into the psychological pricing trick that brands use to make you spend more money.
Full transcript of The Decoy Effect
You are constantly buying things you don't want, just because a useless third option exists. It’s called the Decoy Effect, and major brands use it to hack your brain every day. Imagine walking into a movie theater. A small popcorn is four dollars, and a large is eight. Most people choose the small. Eight dollars feels like a rip-off for a snack. But then, the theater introduces a medium size for seven dollars and fifty cents. Suddenly, the math in your head changes completely. The medium exists only to make the large look like a steal. For just fifty cents more, you get the upgrade. You happily hand over the eight dollars. You think you made a smart choice. In reality, you spent four dollars more than you planned. The medium was never meant to be sold. It was a psychological trap designed to collect dust. This trick is everywhere, from subscription tiers to coffee shops, quietly emptying your wallet. Next time you spot an obvious bad deal, ask yourself: are you choosing, or are you being guided?