You walk into the movie theater, excited for the film.
Before you head to your seat, you stop at the concession stand.
Popcorn? Of course.
A drink? Sure.
Maybe some candy too.
Then you see the prices:
Small popcorn: $6
Medium: $7
Large: $8
Wait… for just $2 more than the small, you can get more than double the amount in a large?
Seems like a no-brainer, right?
That’s exactly what they want you to think.
Because they’re not just selling snacks —
👉 They’re selling psychology.
The prices aren’t random. They’re part of a clever psychological trick called the Decoy Effect (or asymmetric dominance effect).
Here’s how it works:
You have three options — small, medium, and large.
The medium is priced so close to the large that it makes the large look like the smartest deal.
But here’s the secret:
The medium isn’t supposed to sell at all.
It’s the decoy, placed there to push you toward the higher-priced item.
Your brain automatically decides:
Small = overpriced
Medium = pointless
Large = best value
So you buy the large.
You feel clever.
The theater smiles.
Movie theaters don’t make much from ticket sales.
Their real profit? 🎯 Concessions.
That $8 tub of popcorn probably costs them less than $1 to make — butter flavor included.
Because popcorn is so cheap to produce, they can afford to:
Inflate the small size to make it look bad.
Price the medium close to the large.
Make the large look like an unbeatable deal.
It’s not about selling popcorn.
It’s about selling perceived value.
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