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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryStrategy & FrameworksDecoy Effect

Strategy & Frameworks

Decoy Effect

Joel Huber, John Payne and Christopher Puto's 1982 finding that adding an inferior option shifts preference toward a target option.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

The decoy effect is the tendency for an added, inferior option to shift preference toward a target option. Joel Huber, John Payne and Christopher Puto described it in 1982. In pricing, a deliberately less attractive option can make a nearby target option look like better value, nudging buyers toward it.