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Anchoringand-adjustment heuristic impacts estimations from "summary" of Thinking Fast and Slow by Book Summary
Anchoring-and-adjustment heuristic is a cognitive bias that affects our estimations by relying heavily on an initial piece of information, or anchor, and adjusting from there. This concept plays a significant role in how we make decisions and judgments, leading us to sometimes make inaccurate estimates based on the initial anchor. When faced with a question that requires an estimation, we tend to start from a reference point, or anchor, and then adjust our judgment based on additional information. However, the initial anchor has a strong influence on our final estimate, even if it is arbitrary or irrelevant to the actual question at hand. For example, if asked to estimate the population of a city after being shown a high or low anchor number, our final estimate will be skewed in the direction of the anchor. This shows how the anchoring-and-adjustment heuristic can impact our decision-making process and lead to biased estimations. Moreover, the anchoring effect has been demonstrated in various studies, showing that even when individuals are aware of this cognitive bias, they still fall prey to its influence. This highlights the power of the initial anchor in shaping our judgments and decisions, often leading us astray from more accurate estimations.- The anchoring-and-adjustment heuristic is a cognitive shortcut that can impact our estimations by heavily relying on an initial anchor and adjusting from there. This bias can lead to inaccurate judgments and decisions, highlighting the importance of being aware of our cognitive processes and taking steps to mitigate the influence of anchors on our estimations.
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