Product Theory

The Hidden Forces That Shape User Behavior

Spencer Shulem

A collection of principles—the mental models that separate products that win from the ones that don't. From psychology, behavioral economics, design, and hard-won experience building products used by millions.

Each chapter opens with a story, then the application, the research behind it, and finally the limits—because no principle is universal.

Available February 15, 2025
Author

Spencer Shulem built his first two apps at 13—medical and productivity tools that became top sellers in their categories.

By 19, he'd raised venture capital and built a productivity app that hit #1 globally. Forbes ranked it the top life manager in the world.

Now a founder at BuildBetter.ai, he's talked to over 2,000 product people trying to understand what separates the products that win from the ones that don't.

Table of Contents
Part One

Pricing & Value

AnchoringCharm PricingThe Decoy EffectMental AccountingThe Utility Paradox
Part Two

Retention & Inertia

The Sunk Cost FallacyThe Endowment EffectStatus Quo BiasThe IKEA EffectCommitment & ConsistencyHedonic AdaptationReciprocityAttachment TheoryEmotional Loss AversionHedonic Stockholm Syndrome
Part Three

Choice & Decision

The Paradox of ChoiceLoss AversionThe Mere Exposure EffectSocial ProofThe Shrinking SetLaws of Attraction
Part Four

Perception & Positioning

PositioningJobs To Be DoneVeblen GoodsThe Peak-End RuleThe Pratfall EffectThe MAYA PrincipleLenses
Part Five

Metrics & Systems

Goodhart's Law
“This won't give you answers—every product is different. But it will give you the right questions.”