Anchoring bias is the tendency to rely too heavily on the first piece of information encountered when making decisions — the "anchor" — even when that number is arbitrary or irrelevant.

How Anchoring Works

The brain uses the first number it sees as a reference point for all subsequent judgments. Adjustments are made from the anchor, but rarely far enough.

Examples

• Salary negotiation: The first number named sets the range — always name first if you're selling
• Retail pricing: "Was $200, now $99" — the $200 anchor makes $99 feel like a deal
• Legal: Prosecutors who ask for longer sentences get longer ones even after negotiation
• Real estate: Listing price anchors buyers' perception of value

Counter-Strategy

Before accepting any anchor, research independent reference points. Ask yourself: Where did this number come from, and does it actually reflect reality?

Reference:

Wikipedia: Anchoring Effect

https://en.wikipedia.org/wiki/Anchoring_effect