literature review of the anchoring effect

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A literature review of the anchoring effect

2011, The Journal of Socio-Economics

The anchoring effect is one of the most robust cognitive heuristics. This paper reviews the literature in this area including various different models, explanations and underlying mechanisms used to explain anchoring effects. The anchoring effect is both robust and has many implications in all decision making processes. This review paper documents the many different domains and tasks in which the effect has been shown. It also considers mood and individual difference (ability, personality, information styles) correlates of anchoring as ...

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Psychologists have identified several limitations to, and biases in, human decision-making processes. One such bias is the anchoring and adjustment effect, which has been demonstrated to be robust both inside and outside the experimental laboratory. Some decision support ...

The impact of the anchoring heuristics on the Decision Making. In: Sbornik prispevku Mezinarodni Masarykovy konference pro doktorandy a mlade vedecke pracovniky 2014. Hradec Kralove : MAGNANIMITAS. 5. vyd. 2014. ISBN 978-80-87952-07-8, s. 232 -240.

This paper focuses on the impact of anchoring heuristics on the judgment in decision making. The results of a conducted survey show that the initial anchors bias the respondents’ estimates. The level of influence, measured by the anchoring index, is proportional to the level of knowledge of the investigated problem. The anchoring mechanism works in a way that people ascribe disproportionally high weight to the initial information received and additional information only serve for the insufficient correction. Article also shows managerial implications of the anchoring heuristics and shows how to defend of its impact.

European Journal of Social Psychology, 2008

JEL classification: C91 D12 We find that the actual willingness to pay for various consumer goods can be manipulated by an uninformative anchor, replicating Ariely et al. (2003). We furthermore demonstrate that the anchoring effect decreases but does not vanish with higher cognitive ability.

Organizational Behavior and Human Decision Processes, 1997

The anchoring effect belongs to one of the most extensively studied cognitive biases in judgment and has been shown to be robust in a variety of domains and conditions. This current study on 100 adolescents in Slovakia (aged 16 – 18, 62% females) investigates the role of the anchor relevance and the familiarity of products on one's willingness-to-pay. The presence of the anchoring and adjustment heuristic has been confirmed in the Slovak cultural environment. The magnitude of the anchoring effect is not affected by previous experience with the product. However, the effect is higher when the anchors are relevant. By this, the effect was higher when the anchor was the price paid by other people, rather than when it was the result of obviously irrelevant mathematical operations.

Teaching of Psychology - TEACH PSYCHOL, 2002

This article presents a technique used to elucidate the anchor- ing-adjustment heuristic and to integrate the concept with social psychological principles. After drawing a high or low number out of a hat, students estimated the number of yearly stroke-related deaths that occur in the United States. The interaction between type of anchor and familiarity with the heuristic predicted stroke es- timates. Class discussion highlighted the power of situational forces, implications of cognitive biases, and methodological issues. Students' pre- and postdemonstration definitions of the anchor- ing-adjustment heuristic indicated that the demonstration helped them to understand the concept. Students described the demonstra- tion and discussion as informative and enjoyable. Many people, even students of psychology, believe they are immune to the influence of the situation. Exposing stu- dents to readings and lectures that detail the ways in which situational forces systematically shape beha...

Organizational Behavior and Human Decision Processes, 1999

Anchoring is a pervasive judgment bias in which decision makers are systematically influenced by random and uninformative starting points. While anchors have been shown to affect a broad range of judgments including answers to knowledge questions, monetary evaluations, and social judgments, the underlying causes of anchoring have been explored only recently. We suggest that anchors affect judgments by increasing the

The mystery of decision-making blog, 2022

In the decision-making landscape, our choices are often shaped by many factors, some of which operate beneath the surface of conscious awareness. Among these cognitive influences lies the anchoring effect, a psychological phenomenon explored extensively by Daniel Kahneman and Amos Tversky in their seminal work. The anchoring effect subtly guides our judgments and evaluations, profoundly impacting our decisions in various domains, from consumer behavior to negotiations and beyond. When exploring the anchoring effect, we delve into its mechanisms, manifestations in real-world scenarios, and implications for marketers and decision-makers alike. Through a series of illuminating studies and examples, we uncover the pervasive influence of anchors in shaping perceptions, preferences, and, ultimately, the choices we make.

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A literature review of the anchoring effect

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