[PaulDavisThe1st]

The version I'm familiar with was more about driving consumers to a middle-priced version by adding a more expensive version.

Offer version A at $10, and version B at $50, most people pick A.

Offer version A at $10, version B at $50, and version C at $25, most people pick C.

[gradyfps]

What you're referencing is usually called the decoy effect, which isn't the same as decision paralysis.

[financetechbro]

Never heard of decoy effect. Always referred to this phenomenon as “anchoring”

[csa]

> Never heard of decoy effect. Always referred to this phenomenon as “anchoring”

Correct. The example they gave is anchoring.

Anchoring typically looks like $10-$25-$50, and they want you to buy the $25 item. Sometimes the presence of the $50 item can have zero sales, but the $25 item will sell better than if the options were just $10 and $25.

Decoy would be more like $10-$40-$50, and they want you to buy the $50 item and the $40 item has less than it’s sticker value. Decoy is commonly used to encourage people to buy at the top of their budget range (as one example).

[financetechbro]

Reminds me of Apple’s pricing scheme