What is anchoring bias?

Can you explain what anchoring bias is?

Sure! Anchoring bias is a cognitive bias where individuals rely too heavily on the first piece of information they encounter when making decisions.

Can you give me an example of anchoring bias in real life?

Absolutely! For instance, if you're shopping for a car and the first one you see is priced at $30,000, you might consider that as a reference point, making a $25,000 car seem like a great deal, even if it's still overpriced.

How can I avoid falling for anchoring bias?

To avoid anchoring bias, try to gather multiple pieces of information before making a decision and be aware of your initial reference points.

Is anchoring bias common in negotiations?

Yes, it's very common! In negotiations, the first offer often sets the tone for the discussion, influencing perceptions of value.