ANCHORING BIAS Meaning and
Definition
-
Anchoring bias refers to a cognitive bias or tendency in which individuals rely heavily on the initial piece of information they receive (also known as the anchor) when making subsequent judgments or decisions. This bias tends to influence individuals to rely too heavily on this initial information, leading them to make judgments that are often skewed or biased. The anchor can be any type of information, such as a number, a statement, or a reference point, which serves as a reference or starting point for future judgments.
The anchoring bias occurs because individuals typically have a cognitive tendency to be influenced by the first piece of information they encounter, even if it is arbitrary or irrelevant to the decision at hand. This bias can be observed in a variety of contexts, including negotiations, pricing, and decision-making in general.
For example, if individuals are presented with a high price for a product initially, subsequent price offers or negotiations will be heavily influenced by this anchor. They may perceive subsequent offers as more reasonable or discounted, even if they are still relatively high compared to their actual value. Conversely, if individuals are initially presented with a low price, subsequent offers may be perceived as more expensive than they actually are.
Overall, the anchoring bias highlights the tendency of individuals to rely too heavily on the anchor or starting point they encounter, leading to biased judgments and potentially impacting decision-making processes.
Common Misspellings for ANCHORING BIAS
- znchoring bias
- snchoring bias
- wnchoring bias
- qnchoring bias
- abchoring bias
- amchoring bias
- ajchoring bias
- ahchoring bias
- anxhoring bias
- anvhoring bias
- anfhoring bias
- andhoring bias
- ancgoring bias
- ancboring bias
- ancnoring bias
- ancjoring bias
- ancuoring bias
- ancyoring bias
- anchiring bias
- anchkring bias
Etymology of ANCHORING BIAS
The word "anchoring bias" is derived from two separate terms: "anchor" and "bias".
1. Anchor: In the context of cognitive psychology, an anchor refers to a reference point or starting point that influences subsequent judgments or decisions. Anchoring is a mental process where individuals rely heavily on the initial information or value presented when making judgments or estimates.
2. Bias: Bias refers to a systematic deviation from rationality or objectivity, influencing how individuals make judgments or decisions. In this context, it refers to the tendency to be influenced by the anchor, leading to a cognitive bias.
Therefore, "anchoring bias" combines these two concepts to describe the tendency of individuals to rely heavily on the initial information or value (anchor) provided when making judgments or decisions, which may subsequently introduce bias into their thinking.
Infographic
Add the infographic to your website:
