Anchoring bias influences judgments from "summary" of Thinking, Fast and Slow... in 30 Minutes by 30 Minute Expert Summary Staff
Anchoring bias is a cognitive bias that influences how we make judgments and decisions. This bias occurs when we rely too heavily on the first piece of information we receive when making decisions. Once we have that initial piece of information, we tend to anchor our judgments around it, even if it is completely irrelevant to the decision at hand. For example, if someone tells us that a certain item is on sale for $100 off its original price of $300, we may anchor our judgment around the $300 price point. This could lead us to believe that the item is a good deal, even if it may not actually be worth $300 in the first place. Our judgment becomes skewed because we are anchored to that initial piece of information. Anchoring bias can have a significant impact on our decisions, as it can lead us to make choices that are not in our best interest. This bias can influence how we negotiate prices, make purchasing decisions, and even how we perceive the value of certain items or experiences. To overcome anchoring bias, it is important to be aware of its influence on our judgments and decisions. By recognizing when we are being anchored to a particular piece of information, we can take steps to distance ourselves from that anchor and make more rational decisions. This may involve seeking out additional information, considering alternative perspectives, and being open to changing our initial judgments based on new evidence.- Anchoring bias is a powerful cognitive bias that can impact how we make decisions in various aspects of our lives. By understanding its influence and taking steps to mitigate its effects, we can make more informed and rational judgments.
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