Which of these 3 pizzas offers more value for money? The large one?

This is a classic example of Decoy effect.
This is a pricing strategy businesses apply to make us buy the high priced product.

For a mere Tk 100 increase, customers find the large pizza more appealing. The medium sized pizza makes the large sized one look like a better deal. It influences our choice in a subtle way. So sometimes, we need to 'think slow' & ask-"Do I really need the larger sized one? " #behavioralecononomics

We Are All Behavioural, More, or Less: A Taxonomy of Consumer Decision-Making
https://doi.org/10.1093/restud/rdac055
https://www.nber.org/system/files/working_papers/w28138/w28138.pdf
…reduces 20 bias and standard preference measures to four behavioral common factors
…results support processing-based models where basic limitations in #cognition and/or attention produce multiple biases

#BoundedRationality #BehavioralEcononomics