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Pricing & menu

Decoy pricing

By · Updated · Sources and editorial policy

Also called: decoy effect · asymmetric dominance

Decoy pricing adds a third option that is clearly worse value than one of the other two, making that one look obviously correct. On a menu it shows up in portion tiers, wine pours, and add-ons — anywhere a guest chooses between sizes of the same thing.

Worked example · Wine by the glass

6 oz pour
$11
9 oz pour (the decoy)
$17
Half carafe, 12.5 oz
$19
Intended effect
the carafe reads as the obvious buy

The 9 oz pour doesn't need to sell. It exists so the carafe's per-ounce value is visible without the guest doing arithmetic.

Where operators apply it on a menu — the effect is untested with real menu orders
ChoiceThe decoyWhat it makes obvious
Wine poursAn awkwardly-priced mid pourThe carafe's per-ounce value
Portion sizesA small that's nearly the price of the regularThe regular is the sensible buy
Add-onsA single premium add-on priced near the comboThe combo
Set menusÀ la carte totalling just above the prix fixeThe prix fixe

In every case the decoy's job is to remove arithmetic from the guest's decision, not to hide anything. If a guest who did the math would feel misled, it isn't framing — see price anchoring for where that line sits.

The guide that works it through

Menu Psychology: What the Evidence Says About Dollar Signs, Decoys, Anchors and Layout

An evidence review of menu psychology for restaurant owners: which pricing and layout tactics were tested with real orders, how large the effects were, and how to test one yourself.

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