“People don’t choose options in isolation — they choose options in comparison. Control the comparison.” — Steven Bartlett
Human beings almost never evaluate options in absolute terms. We evaluate them relative to what else is available. The perceived value, attractiveness, and appropriateness of any choice is shaped almost entirely by what it is compared to.
This is the Goldilocks principle in action: not too hot, not too cold — just right. And crucially, what counts as “just right” is defined by the extremes on either side.
A £10 bottle of wine feels reasonable at a restaurant when the menu includes a £25 option. At a restaurant where the most expensive option is £15, the same £10 bottle feels expensive. The bottle hasn’t changed. The frame has.
The first number or option presented in a decision context becomes an "anchor" against which all subsequent options are evaluated. Even when the anchor is known to be arbitrary or irrelevant, it powerfully shapes judgements. Negotiators who start with higher initial offers consistently achieve better outcomes — not because of the anchor's direct effect, but because it shifts the entire reference frame of the negotiation.
The Goldilocks strategy works by deliberately constructing the choice context. When you present your preferred option, you frame it between:
This positioning makes your preferred option feel obviously right — not through any inherent quality, but through the contrast effect.
Pricing applications:
Never present your preferred option in isolation. Construct the choice context deliberately — positioning extremes that make your target option feel like the obvious, rational choice.
This principle extends far beyond pricing strategy into every domain where choices are presented.
In hiring: A great candidate appears even stronger when positioned alongside a clearly weaker applicant in the same cohort.
In negotiation: An extreme opening position anchors the negotiation, making subsequent concessions feel like reasonable compromise even when the final position was your original target.
In product design: A premium feature set on a high tier makes the mid-tier seem affordable and feature-rich by comparison, even if the mid-tier alone would seem expensive.
In communication: Presenting the most extreme version of an opposing argument before your own makes your position seem moderate and reasonable.
Choose one product, service, or proposal where you need to influence a choice. Design the choice architecture:
A related principle is the decoy effect — introducing a third option that is clearly dominated by one alternative but makes that alternative appear more attractive. This is why streaming services often include a “print only” option alongside “digital only” and “print + digital” — the print-only option makes the combined package look like better value, even though almost nobody would choose print alone.
Understanding these mechanisms allows you to design choice environments strategically rather than leaving perception to chance.