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The Decoy Effect

An 'objectively-unsuitable' option will change the value proposition for the others.

Similar psychology:

Hyperbolic Discounting

Likely impacts:

Last updated: 03/11/2026

How to utilise this in your designs

When savings pass a certain amount, you could show your fee beside what banks and other providers charge, so their pricier options act as a decoy for yours.

Payment screen for a money transfer quote. A small transfer shows only the fees, but a large transfer adds a savings message under the fees: "Save at least 196.31 GBP compared to banks and other providers".

Example from

Wise

Possible impacts

A decoy that's clearly worse at a similar price gives customers a direct comparison, which might make your preferred plan feel like much better value.

As seen in:

Wise Framing your fees

By making one option look like the obvious choice, a decoy may help customers decide more easily, which could increase purchases of the plan you most want them to pick.

As seen in:

Deliveroo Larger store available

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Written by Peter Ramsey

Consultant to 100+ companies

Published: 20/07/2023