Anchoring bias is a cognitive bias that occurs when people rely too heavily on the first piece of information they receive when making decisions. This initial information acts as an anchor and influences subsequent judgments and decisions. This bias can occur in a variety of contexts, from negotiations and financial decisions to medical diagnoses and legal judgments. Anchoring bias can be particularly problematic when the initial information is irrelevant or misleading. For example, in a negotiation, the first offer made can anchor the entire negotiation, leading to a final agreement that is not in the best interest of either party. Similarly, in financial decision-making, the first stock price seen can anchor subsequent judgments about the stock's value, leading to poor investment decisions. One factor that contributes to anchoring bias is the human tendency to seek out and rely on shortcuts in decision-making. Anchoring provides a quick and easy way to make decisions, but it can also lead to errors and inaccuracies. Another factor is the human tendency to overestimate the accuracy of the initial information received, even when it is incomplete or unreliable. To overcome anchoring bias, it is important to be aware of its influence and to actively seek out additional information before making decisions. This can involve gathering more data, seeking out alternative perspectives, and challenging assumptions. It can also involve consciously setting aside initial impressions and being open to revising judgments based on new information.
cognitive bias, decision-making, negotiation, financial decisions, shortcuts
CITATION : "Matthew James. 'Anchoring Bias.' Design+Encyclopedia. https://design-encyclopedia.com/?E=352743 (Accessed on April 08, 2025)"
Anchoring Bias is when people rely too heavily on the first piece of information they hear or see. This can cause them to make decisions that are not based on facts or reality. For example, if a child is told that a certain toy is very expensive, they might think it is too expensive even if it is actually cheaper than other similar toys. This is because the child has anchored their opinion on the first piece of information they heard about the toy.
Cognitive bias, logical fallacy, decision-making, heuristics, bias blind spot.
Anchoring bias is a cognitive heuristic that occurs when people rely too heavily on a single piece of information when making decisions. It is an example of a logical fallacy, as the initial piece of information used to make a decision is not necessarily the most relevant or important. Anchoring bias occurs when people overestimate the importance of the initial information they receive and underestimate the importance of subsequent information. People may then become too attached to the initial piece of information and draw conclusions based solely on it, rather than considering the full range of available information. This can lead to decisions that do not reflect the most accurate assessment of the situation.
Social psychology, cognitive bias, logical fallacy, decision making.
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