I came across this idea while looking to buy a house and I wondered if there was a term for it. The initial purchase options have a linear cost to value relationship. However, I'm tempted to make a larger purchase than planned because the additional value is proportionately much higher.
- Option 1: Cost = 3, Value = 3
- Option 2: Cost = 5, Value = 5
- Option 3: Cost = 7, Value = 10