Anchoring bias is a cognitive bias where individuals heavily rely on an initial piece of information, known as the 'anchor,' impacting decision-making processes.
Anchoring bias is a cognitive bias where individuals heavily rely on an initial piece of information, known as the 'anchor,' when making decisions. This bias causes people to inadequately adjust their judgments away from the initial anchor, even if it is arbitrary.
For example, in a study by Tversky and Kahneman, subjects' estimates of the number of nations in the United Nations were significantly influenced by a random initial number they were presented with, showcasing how anchoring bias impacts decision-making processes.
This bias can lead to individuals being overly influenced by irrelevant or arbitrary information, affecting their ability to make rational judgments and decisions.
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