Skip to main content
0day streak
Well-established

Core Thinking

Anchoring Bias

Social-cognitive bias

Definition

The tendency to rely too heavily on the first piece of information encountered (the 'anchor') when making decisions.

Why it happens

When we need to estimate or decide quickly, our brain uses the first available reference point as a starting position and adjusts from there — but we typically don't adjust enough.

Real-life examples

  • A shirt marked down from $100 to $60 feels like a deal, even if it's only worth $40.
  • Salary negotiations are heavily influenced by whoever states a number first.
  • Judges give harsher sentences when prosecutors request higher penalties.

How to counter it

  1. Before receiving information, set your own independent estimate.
  2. Research comparable options or data points from multiple sources.
  3. Consciously ignore the first number you hear and recalculate from scratch.
  4. Use a structured decision matrix to weigh factors equally.

Quick tips

  • Pause before reacting to the first number or piece of information you hear.
  • Research independently before entering a negotiation.
  • Consider multiple reference points, not just the first one.
  • Ask: 'Would I evaluate this the same way without that initial information?'

Sources and further reading