Analysing your IQ
Please Wait
AKA: "Asymmetric Dominance"
Preferences change when a third, inferior option is introduced that makes one original option look better.
Decoy Effect affects everyone, including (especially) people who think they're immune. The first step to fixing it is understanding how it works.
A $50 wine seems reasonable next to a $200 bottle—that's why restaurants add overpriced options.
This bias is particularly dangerous because it operates below conscious awareness. By the time you notice it, the damage is often done.
This error is driven by Relative comparison is easier than absolute evaluation; decoys shift the reference frame..
Evolution optimized for speed and safety, not truth. Decoy Effect is a byproduct of heuristics that once had adaptive value.
In investing: Decoy Effect leads to holding losing positions too long or selling winners too early.
In relationships: This bias causes people to interpret ambiguous signals in ways that confirm existing beliefs about partners.
In work: Decoy Effect makes it harder to update strategies when market conditions change.
In health: People ignore symptoms that contradict their self-image as "healthy" or "young."
The scientific literature on Decoy Effect spans behavioral economics, cognitive psychology, and decision science. The finding is robust across cultures and contexts.
Evaluate each option independently. Ignore "obviously bad" options that exist only to manipulate comparison.
Seek disconfirming evidence: Actively look for data that challenges your current belief.
Use decision journals: Write down predictions before outcomes are known, then review accuracy.
Consult diverse perspectives: People with different backgrounds spot different biases.
Implement decision rules: Pre-commit to criteria before emotionally charged situations arise.
Time-box decisions: Revisit important conclusions after a cooling-off period.
Some brains are more susceptible to this than others. Test your Intelligence to find out.
Preferences change when a third, inferior option is introduced that makes one original option look better.
The alternate name "Asymmetric Dominance" captures the intuitive essence of the bias. Decoy Effect is the formal psychological term, while "Asymmetric Dominance" describes what it feels like in practice.
Evaluate each option independently. Ignore "obviously bad" options that exist only to manipulate comparison.
The underlying mechanism is relative comparison is easier than absolute evaluation; decoys shift the reference frame.. Human brains evolved heuristics for speed and survival, not accuracy in modern contexts.
Yes. Intelligence doesn't provide immunity—sometimes it makes the bias worse because smart people are better at rationalizing. Awareness and structured decision processes are more protective than raw IQ.
A $50 wine seems reasonable next to a $200 bottle—that's why restaurants add overpriced options.