Anchoring refers to a decision-making Heuristic in which final estimates are heavily influenced by initial value estimates.

Anchoring, in the psychology context, refers to the cognitive bias where an individual relies too heavily on the first piece of information encountered (the "anchor") when making decisions or judgments. This can lead to an inaccurate or biased decision because the initial anchor may not necessarily be the most relevant or accurate piece of information.

Examples of anchoring include:

  1. Pricing: A store advertises a product for $100 and then offers a discount of 20%. Although the product may not be worth $100, the initial anchor of $100 may lead the buyer to perceive the product as a good deal at $80.

  2. Negotiation: A job candidate requests a salary of $70,000 during an interview. The hiring manager, who had planned to offer $60,000, is now more likely to make an offer close to the candidate's initial anchor of $70,000.

  3. Evaluations: A student is given a high mark on their first assignment in a class. The professor then grades their subsequent assignments more harshly because of the initial anchor of the high mark on the first assignment.

In each of these examples, the initial anchor influences subsequent judgments or decisions, even if it is not the most relevant or accurate piece of information.

Related Articles

Decision making at■■■■■■■■■■
Decision making refers to the process(es) by which an individual selects one course of action from among . . . Read More
Distortion at■■■■■■■■■
Distortion in the Psychology Context: Understanding Cognitive Distortions, Perception, and RealityIn . . . Read More
Controlled thinking at■■■■■■■■
In the psychology context, controlled thinking refers to deliberate, effortful, and conscious mental . . . Read More
Consideration at■■■■■■■■
Consideration in the Psychology Context: The Role of Deliberation and ThoughtIn the field of psychology, . . . Read More
Misattribution at■■■■■■■■
Misattribution in the psychology context refers to the incorrect attribution of the source, cause, or . . . Read More
Selectivity at■■■■■■■
Selectivity in the psychology context refers to the process or capacity of focusing attention or cognitive . . . Read More
Approximation at■■■■■■■
Approximation in the Psychology Context:Approximation in psychology refers to the process of estimating . . . Read More
Calculation at■■■■■■■
Calculation in the Psychology Context: Understanding, Examples, Recommendations, and Related ConceptsCalculation . . . Read More
Order effect at■■■■■■■
In the psychology context, the order effect refers to how the sequence in which stimuli, information, . . . Read More
Cognitive misers at■■■■■■■
Cognitive misers describe the idea that people are so limited in their ability to think and make inferences . . . Read More