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The decoy effect only works when the number of options is less than six.

  • Published In: Kyklos, 2025, v. 78, n. 1. P. 74 1 of 3

  • Database: Academic Search Ultimate 2 of 3

  • Authored By: Banerjee, Subrato; Kandregula, Pragathi 3 of 3

Abstract

The decoy effect is a well‐documented source of violation of elements of demand theory. We experimentally demonstrate that the decoy effect only works when the number of options is limited (specifically not more than five). This is because, with more and more options, it may get difficult for consumers to spot the decoy (against which a Pareto dominant option is made to look more attractive), rendering the decoy effect ineffective. Identifying that the decoy effect works because it facilitates easier choice‐making, we observe that the difficulty in choice‐making with or without the decoy is statistically the same when the number of options to choose from is six or more. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Kyklos. 2025/02, Vol. 78, Issue 1, p74
  • Document Type:Article
  • Subject Area:Marketing
  • Publication Date:2025
  • ISSN:0023-5962
  • DOI:10.1111/kykl.12413
  • Accession Number:182008545
  • Copyright Statement:Copyright of Kyklos is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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