Choice Overload:  Psychological Paradoxes


Expensive menu items make other choices look cheap

Example: Bread machines at Sharper Image: Anchoring

One machine $200, one $250.

  • Most bought the $200 machine. coming out company and delay buying the stock even though decision to buy has already been made.

  • Added third machine for $400 and suddenly most people switched to $250. Available choices changes point of reference 'anchor' on which decision is made.

Example:  Outpost.com

©2001 Paul Whitmore