The lure effect, also known as the bait effect, is a fascinating phenomenon in behavioural economics and marketing. It describes the tendency of people to be influenced in their decisions by attractive but ultimately irrelevant options. This effect plays a crucial role in understanding consumer behaviour and shows how easily our decision-making can be manipulated by external stimuli.

Interestingly, the lure effect occurs in many everyday situations. A classic example is offering products at seemingly reduced prices that attract customers even though they did not originally want to buy the product. Another example is the presentation of a less attractive option alongside two others, making one of the two appear more attractive and thus influencing the consumer's choice.

In the world of marketing and advertising, the lure effect is often used strategically to increase the appeal of products. By adding a less desirable option, companies can influence the perception and behaviour of consumers so that they opt for the more expensive or more profitable product.

This effect shows how important it is to critically scrutinise decisions and be aware of the various techniques used to influence our choices. The Lure effect emphasises the power of presentation and context in decision-making.

In the context of behavioural economics, the Lure effect offers important insights into the irrationalities and anomalies in human behaviour. It shows that our decisions are not always based on rational considerations, but are often characterised by subtle and unconscious influences.

In summary, the lure effect is a key element in understanding consumer behaviour. It illustrates how external factors and presentation techniques can influence our perceptions and decisions. This knowledge is of great importance both for consumers who want to make more conscious decisions and for companies that want to develop effective marketing strategies.