Anchoring Bias
Cognitive BiasNegotiationDecision Making
Anchoring Bias describes the tendency to rely too heavily on the first piece of information (the anchor) when making decisions.
Introduction
Anchoring Bias describes the tendency to rely too heavily on the first piece of information (the anchor) when making decisions.
Core Concepts
- Initial Influence: First impressions disproportionately affect judgment.
- Cognitive Adjustment: Difficulty in moving away from initial anchors.
- Mitigation Strategies: Using multiple reference points to reduce bias.
Applications
- Negotiations for setting starting points effectively.
- Pricing strategies to influence consumer behavior.
Related Resources
- Book: "Predictably Irrational" by Dan Ariely.
- Tools: Decision-making frameworks for offsetting biases.