[CAJobPortal Insights] Decision Making and the presence of the clearly-inferior option &

Good Afternoon,

In life, often perception is reality. We can often be primed into seeing the world through a particular prism.

In the book Predictably Irrational, https://amzn.to/2KLx5xR, behavioural economist Dan Ariely explains that he was intrigued by a puzzling set of options that “The Economist” once offered prospective subscribers:

You could get access to

  1. a)Digital edition for $59
  2. b)Print edition for $125
  3. c)Combined print and digital edition, also for $125.

Intuitively, the offer of the print-alone option seemed absurd. It was a no-brainer that you would rationally choose to forego digital access when it costs nothing extra, so why even list it? Why not just say that the print subscription also includes access to the digital archives?

Predictably, Option B found no takers; 84% opted for the combo deal (Option C), and 16% for the web-only content (Option A)

But then he repeated the poll without offering the unpopular print-only alternative—after all, nobody was choosing it, so what difference could it make to leave it out?

  1. a)Digital edition for $59
  2. b)Combined print and digital edition for $125.

The second time around 32% wanted the print subscription, while 68% preferred to go web-only.

It appears that the presence of the clearly-inferior option altered the decision process by making the combined digital and print subscription seem like a better deal.

And the author finds the same concepts applicable in a wide range of situations, covering travel decisions and even our ratings of physical attractiveness.

(Apparently, you’ll seem more attractive if you are accompanied by a sibling who looks similar to you, but a bit uglier)

Isn’t that amazing.

Maybe one example I can think of is when we pitch for CAJobPortal.com’s value proposition for finance hiring , we always ask HRs to compare between

1) A finance specialist like CAJobPortal who can talk to a candidate w.r.t. IFRS and Transfer Pricing

2) A ‘run of the mill’ consultant who presses Ctrl+F in the resume, searches for keywords and then asks the candidate about what is your CTC and Notice Period.

The presence of this clearly-inferior option has altered the decision process of so many top tier clients and got us mandates.  [ No wonder, we have clocked a Billable CTC of INR 25 crores so far]

Could you think of more examples ?

Shall wait to hear from you