Anchoring Bias
Anchoring bias is a cognitive bias that occurs when an individual relies too heavily on an initial piece of information offered (the “anchor”) when making decisions. This bias is particularly common in situations where the individual has limited knowledge or experience with the topic at hand. Anchoring bias can lead to poor decision-making, as the individual may be unable to accurately assess the situation without relying on the anchor.
Anchoring bias is a form of cognitive bias that occurs when an individual relies too heavily on an initial piece of information offered (the “anchor”) when making decisions. This bias is particularly common in situations where the individual has limited knowledge or experience with the topic at hand. Anchoring bias can lead to poor decision-making, as the individual may be unable to accurately assess the situation without relying on the anchor.
History of Anchoring Bias
The concept of anchoring bias was first introduced by Amos Tversky and Daniel Kahneman in 1974. They conducted a study in which participants were asked to estimate the percentage of African countries in the United Nations. The participants were given two different anchors, one high and one low, and the results showed that the participants’ estimates were significantly influenced by the anchors. This study demonstrated that people tend to rely too heavily on initial information when making decisions.
Since then, anchoring bias has been studied extensively in the fields of psychology and economics. It has been found to have a significant impact on decision-making in a variety of contexts, including negotiations, financial decisions, and medical decisions. Anchoring bias can also lead to overconfidence in one’s own abilities, as the individual may be unable to accurately assess the situation without relying on the anchor.
Table of Comparisons
| Situation | Anchoring Bias | No Anchoring Bias |
|---|---|---|
| Negotiations | More likely to accept an initial offer | More likely to negotiate for a better deal |
| Financial Decisions | More likely to accept an initial offer | More likely to shop around for the best deal |
| Medical Decisions | More likely to accept an initial diagnosis | More likely to seek a second opinion |
Summary
Anchoring bias is a cognitive bias that occurs when an individual relies too heavily on an initial piece of information offered (the “anchor”) when making decisions. This bias is particularly common in situations where the individual has limited knowledge or experience with the topic at hand. Anchoring bias can lead to poor decision-making, as the individual may be unable to accurately assess the situation without relying on the anchor. For more information on anchoring bias, please visit websites such as Psychology Today, Harvard Business Review, and Investopedia.
See Also
- Confirmation Bias
- Availability Heuristic
- Framing Effect
- Hindsight Bias
- Status Quo Bias
- Representativeness Heuristic
- Overconfidence Bias
- Outcome Bias
- Choice-Supportive Bias
- Optimism Bias
