2.2.1 anchoring bias

notes from revisiondojo

anchoring bias

the tendency to rely too heavily on the first piece of information encountered (the ‘anchor’) when making decisions, even if it’s irrelevant

why does anchoring happen?

cognitive ease → the anchor provides a mental shortcut, reducing cognitive effort

insufficient adjustment → people often fail to adjust enough from the anchor, even if they know it’s irrelevant

real world examples of anchoring bias

retail pricing → stores display a high ‘original’ price next to a discounted price to make discount seem more attractive

legal sentencing → judges may be influenced by sentencing recommendations, even if they are arbitrary

critical thinking - strengths

• anchoring bias has been replicated across various contexts, demonstrating its reliability

• the concept has real world applications in fields like marketing, law and negotiations

critical thinking - limitations

• many studies use artificial tasks that may not fully capture real decision making - low ecological validity

• awareness of the bias can influence its impact