The version I'm familiar with was more about driving consumers to a middle-priced version by adding a more expensive version.

Offer version A at $10, and version B at $50, most people pick A.

Offer version A at $10, version B at $50, and version C at $25, most people pick C.

Personally, when presented with too many choices, I always feel like some of the choices are the wrong ones - perhaps the cheap ones are garbage, or quite oppositely, you're paying an extra for nothing - and I'm afraid of being a fool for picking them.

No matter how it goes, it's always a negative experience for me.