Definition : Anchoring effect

The anchoring effect is a cognitive bias in which individuals rely too heavily on the first piece of information they receive when making decisions or judgments. This initial information, or “anchor,” can greatly influence subsequent thoughts and choices, often leading to an overvaluation of the anchor and a failure to fully consider other relevant information. This phenomenon can be seen in various contexts, from negotiations and pricing to personal beliefs and opinions. The anchoring effect can have a powerful impact on our decision-making, making it important to be aware of and actively combat in order to make more rational and unbiased choices.

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