Decoy effect

The decoy effect occurs when the presence of a less attractive or less valuable option influences your choice between two other options. This third, less appealing option (the decoy) makes one of the original choices seem more appealing by comparison. For example, if you’re choosing between two smartphones—one more expensive but better, and a cheaper one—adding a third, less attractive phone helps shift your preference toward the more expensive, higher-quality option. Essentially, the decoy affects your decision by highlighting the value differences, nudging you to pick what seems like the better deal.