The decoy effect.

The decoy effect describes how, when we are choosing between two alternatives, the addition of a third, less attractive option (the decoy) can influence our perception of the original two choices.

Decoys are completely inferior to one option (the target) but only partially inferior to the other (the competitor).

Let's say like me, you are an ice cream lover. One fine day, you are out to treat yourself. Shopkeeper provides you options listed below :-

     * one scoop ice cream               Rs.13/-

     * two scoop ice cream               Rs.19/-

     * three scoop ice cream             Rs.19/50

The negligible difference between the price of the 2nd and 3rd options gets your attention. This is called Decoy Effect.

A 2nd option is just a decoy option. Companies provide decoy options so that customers can compare the decoy option (and select the expensive one).

In the absence of a decoy option, the customer will compare - Rs.13/- vs Rs.19/50 - and may probably go with the cheaper version.

But with the decoy option, the customer now compares - Rs.19/- vs Rs.19/50 - and most likely select select the expensive option.

Ever tried buying magazines/anti-virus subscriptions? You may have purchased more than 1year option. Often these services will also indicate the "Best Buy" option.

This option is used by even the top-selling companies.

The decoy effect can cause us to spend and consume more than we really need. When a decoy option is present, we tend to make decisions based less on which will best suit us.

Tailpiece.

Got up at 5, the chores and was ready by a quarter to 9. Left home by 9, was dropped at Thampanoor - Aniyan, at the railway station and me, at the bus stand. Got a low-floor a/c bus and reached Kottarakkara by 12. From there, reached home by an auto-rickshaw.

It was packing time and limbering up for our retutn journey tomorrow.