2Bobs—with David C. Baker and Blair Enns Decoy or Anchor?
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Feb 25, 2026 A lively dive into pricing tactics, distinguishing decoy pricing from price anchoring and why they get confused. They use a movie popcorn example and an economist’s study to show how choices shift. The conversation explores ethics, emotional reactions to manipulation, and when each tactic is appropriate for services versus productized offerings.
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How Decoy Pricing Works
- Decoy pricing inserts a middle, throwaway option designed to push buyers from the cheapest to the most expensive choice.
- Example: theater popcorn priced small $4, medium $7, large $7.95 makes shoppers choose large for perceived value.
Ariely's Economist Decoy Experiment
- Dan Ariely's Economist experiment showed adding a decoy (online-only $125) flipped choices from 32% to 84% for print+online $125.
- Without decoy: print $59 vs print+online $125; with decoy people overwhelmingly picked the higher-priced bundle.
High Anchor Expands Possibility
- High anchor differs: it's an intentionally large, legitimate option introduced first to expand the client's thinking, not to be a fake lure.
- It reframes possibility and invites clients to consider a more ambitious approach and budget.
