Bundling bias, also known as the "package deal effect," is a cognitive bias that can significantly impact individuals' decision-making and preferences when evaluating or choosing between bundled products or services, as opposed to individual items. This phenomenon, rooted in behavioral economics and consumer psychology, suggests that people often make choices based on their perception of value, rather than the actual value itself. The bundling bias is believed to occur because bundling leads to a decoupling of transaction costs and benefits, making the cost of each individual item less obvious. This article will explore the bundling bias in depth, including its definition, causes, and consequences. Read More