What is a common anchoring bias example?
A product shown with an inflated original price makes the sale price feel attractive even if it is still expensive.
Cognitive Biases
Anchoring Bias
The tendency to rely too heavily on the first piece of information encountered.
Anchoring bias skews estimates and negotiations because initial reference points become sticky.
Core question
What anchor is shaping this judgment, and what happens if we reset it?
Example
In salary negotiation, the opening number heavily influences the final outcome even when it is not objectively justified.
How to apply
- 1.Generate estimates independently before group discussion.
- 2.Use external benchmarks and historical distributions.
- 3.Test alternate anchors deliberately.
- 4.Document why the final estimate diverges from the initial anchor.
Pitfalls
- ·Assuming expertise fully protects against anchoring.
- ·Accepting arbitrary anchors from competitors or media.
- ·Forgetting that narratives can anchor as strongly as numbers.
Questions
How do teams reduce anchoring in planning?
Collect independent estimates first and reveal them simultaneously before discussion.
Related
- Confirmation Bias
We seek evidence that supports what we already believe.
- Planning Fallacy
We underestimate time, cost, and complexity.
- Base Rate Neglect
Specific stories can drown out general probabilities.