Wisen's notes

# Anchoring effect

Anchoring effect is a Cognitive bias where an individual is heavily reliant on the first information that they get (the anchor), and compare the subsequent information they get with the first one. The first information that get may be an idea that the individual generates themselves, which mean the individual is anchored to their own first idea (Ahrens 134).

Many of the examples I found in the internet are about how this effect is being used on pricing and negotiation. What I'm interested in more, though, is the type of anchoring effect that is triggered when the second piece of information is not even relevant with the first one. One of the example I found is from BBC Two - Horizon, 2013-2014, How You Really Make Decisions (opens new window). In this experiment, volunteers were supposed to pick up a random ping pong ball from a bag, with a number written on them. Once a ball is picked, the volunteers then asked the maximum amount they would be willing to pay for a bottle of champagne. Yes, the number on the ping pong ball and the price of champagne is completely irrelevant. The volunteers who picked up a ball with number 10, would make an offer around £7 - £20 for that bottle of champagne. The other group of volunteers who picked up a ball with number 65, would make a maximum offer of around £40 - £80.

# References

Ahrens, How to Take Smart Notes (p. 134).

It makes things worse that we tend to like our first ideas the best and are very reluctant to let go of the, irrespective of their actual relevance (Strack and Mussweiler 1997).