Compromise Effect & AI: the psychology of 3-tier pricing (Goldilocks pricing)

Master the compromise effect (Simonson 1989) — aka « Goldilocks pricing »: the universal tendency of customers to pick the middle option when shown three. Understand why 67 % of Spotify users choose the mid-tier, how to design a 3-tier pricing structure that maximizes ARPU without breaking conversion, and how AI can calibrate the « middle » tier in real time based on segment, usage context and prospect history. Distinct from (and complementary to) the decoy effect.

Course chapters