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Anchoring

Anchoring is the use of (usually) irrelevant information as a reference point for helping to make an estimate of an unknown piece of information. In other words, people use an “anchor point” of an event or a value that they know in order to make a decision or estimate. Behavioural scientists describe anchoring as a cognitive bias.

A revision video on anchoring can be found here

Anchoring is a cognitive bias that occurs when people rely too heavily on the first piece of information they receive (the "anchor") when making decisions. This can lead people to make judgments that are not necessarily consistent with the available evidence or with the true value of what they are evaluating. Anchoring can affect a wide range of decisions, including those related to pricing, negotiation, and risk assessment.

Anchoring can be a particularly powerful influence when people are faced with complex or uncertain situations and lack the time or resources to fully evaluate all of the relevant information.

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