Anchoringand-adjustment heuristic guides estimations from "summary" of Thinking, Fast and Slow... in 30 Minutes by 30 Minute Expert Summary Staff
When making estimations, people often rely on a mental shortcut known as the anchoring-and-adjustment heuristic. This heuristic involves starting with an initial value, or anchor, and then adjusting that value based on additional information to reach a final estimate. The anchor serves as a reference point that influences subsequent judgments, even if it is completely irrelevant or arbitrary. Once the anchor is set, individuals tend to insufficiently adjust away from it, leading to biased estimations. Studies have shown that people tend to adjust their estimates insu...
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