![the anchoring effect the anchoring effect](https://www.ionos.com/digitalguide/fileadmin/DigitalGuide/Teaser/ankereffekt-t.jpg)
The first group’s median estimate was 512, while the second group’s median estimate was 2,250. Now, although the answer to both questions is 40,320, the groups gave different answers. In the above example, the leading anchor was the $150 price tag, which helped you make a price comparison and conclude that the $150 shirt’s a steal! Origin of Anchoring Biasīack in 1974, Kahneman and Tversky conducted a study in which one group of high school students was asked to estimate the result of 1x2x3x4x5圆x7x8, and the other group was asked to calculate 8x7圆x5x4x3x2x1. Think of it as a shortcut or heuristic our brain takes to speed up the decision-making process.
![the anchoring effect the anchoring effect](https://3.bp.blogspot.com/-WZYsOrpBzZo/USInVgzziUI/AAAAAAAAAss/8qnG4rzuF5I/s1600/anchoring.jpg)
Know why? Because of a cognitive bias called anchoring.Īnchoring is the fact that people tend to cling on to the first piece of information (or anchor) they encounter, and let their subsequent actions, such as estimates, arguments, and conclusions, be made in relation to it. What do you do next? You go back to your first find and buy it. However, determined to find something similar and cheaper, you continue with your search, only to find that other shirt prices range between $500-850. You check its price tag, and since you see it’s quite expensive – $150 – you put it back on the rack. After a minute of window shopping, you’re drawn to a fancy silk shirt.