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Decoy effect

    In marketing the '''decoy effect''' (also called the asymmetric dominance effect) is used to describe the phenomenon of greater consumer preference for an item in a two-item choice set caused by the addition to the choice set of a third item that is asymmetrically dominated An asymmetrically dominated item is in one way better than one of the items but in no way better than the other item
    For example if there is a choice set involving MP3 players consumers will generally see higher storage capacity and lower price as positive attributes; while some consumers may want a player that can store more songs other consumers will want a player that costs less In Choice Set Set 1, two are available:
    Choice Set 1
    A B
    price $399 $299
    storage 30GB 15GB

    The asymmetrically dominated item C, is better than B only in terms of storage and in no way better than A. By adding item C—which no consumer would actually choose given that a lower price can be paid for a model with more storage—option A, the non-dominated option would be chosen more often than if only the two choices in Choice Set Set 1
    Choice Set 2
    A B C
    price $399 $299 $450
    storage 30GB 15GB 25GB

    References