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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Decoy Effect
Description: Decoy Effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Decoy effect is a cognitive bias defined by Wikipedia as a situation in which preferences for either option A or B change in favor of option B when option C is presented, which is completely dominated by option B (inferior in all respects) and partially dominated by option A Investors will find a deal more attractive when additional deals of lesser quality are presented at the same time. During pitch sessions, investors change their preferences based on the q...