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decoy effect

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    Decision Architecture Entry #0138

    Why adding a third tier sells the second

    The expensive option is not there to be bought. It is there to change what the middle option looks like, and it does that job without ever being chosen.

    Adept
    The hidden part #0138

    The premium tier nobody buys is not a failure. It is the instrument that decides what the tier below it appears to cost.

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    Choice Design Entry #0230

    Why the free plan exists to make the paid one legible

    A free tier is rarely a gift or a funnel. It is a measuring stick that gives the paid tier a shape, and its limits are chosen to be felt.

    Master
    The hidden part #0230

    A price means nothing until something adjacent makes it comparable. The free plan is that something.

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    Price Psychology Entry #0352

    The reason a decoy tier makes the middle look reasonable

    Three tiers on a pricing page: cheap, middle, expensive. The expensive one is not there to be chosen. It is there to make the middle one look like the sensible option.

    Adept
    The hidden part #0352

    Value is judged by comparison, not absolutely. The tier nobody buys is the one that decides what everyone else buys.

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