Rational brain · Framing & Choice Architecture

Compromise Effect

The middle option gains share because it is easiest to justify — not too cheap, not too expensive — so sellers design the tier they want sold to sit in the middle.

An everyday example

Three plans where the middle one is 'most popular' and the top one exists to make it look moderate.

What it can cost you

Choosing moderation rather than fit; the extremes placed to steer you to the intended middle.

Warning signs

  • I chose the middle to be safe.
  • The top tier looks like it exists for contrast.

One thing to do

Evaluate each tier against your needs, not against its neighbours; ask whether the top tier exists to be bought or to be a bracket.

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