Anchoring bias
Anchoring or focalism is a cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered (the "anchor") when making decisions. During decision making, anchoring occurs when individuals use an initial piece of information to make subsequent judgments. Once an anchor is set, other judgments are made by adjusting away from that anchor, and there is a bias toward interpreting other information around the anchor. For example, the initial price offered for a used car sets the standard for the rest of the negotiations, so that prices lower than the initial price seem more reasonable even if they are still higher than what the car is really worth.

This is an excerpt from the article Anchoring bias from the Wikipedia free encyclopedia. A list of authors is available at Wikipedia.
The article Anchoring bias at en.wikipedia.org was accessed 52 times in the last 30 days. (as of: 07/22/2013)
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Anchoring - Wikipedia, the free encyclopedia
For the guitar playing technique, see Guitar picking#Anchoring. Anchoring or focalism is a cognitive bias that describes the common human tendency to rely too ...
en.wikipedia.org/wiki/Anchoring
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Anchoring bias in decision-making - Science Daily
Anchoring or focalism is a term used in psychology to describe the common human tendency to rely too heavily, or "anchor," on one trait or piece of information ...
www.sciencedaily.com/articles/a/anchoring.htm
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Anchoring Definition | Investopedia
When anchoring, people base decisions or estimates on events or values known to them, even ... Curious about how emotions and biases affect the market?
www.investopedia.com/terms/a/anchoring.asp
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What is anchoring bias? definition and meaning
Definition of Anchoring bias: The act of basing a judgment on a familiar reference point that is incomplete or irrelevant to the problem that is being solved.
www.businessdictionary.com/definition/anchoring-bias.html
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The Anchoring Effect: How The Mind is Biased by First Impressions ...
May 23, 2013 ... A psychological bias that illuminates how we negotiate, predict our emotions, agree a price and much more…
www.spring.org.uk/2013/05/the-anchoring-effect-how-the-mind-is-biased-by-first-impressions.php
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Anchoring Bias: The Power of Arbitrary Numbers
Oct 15, 2012 ... Anchoring can be especially detrimental to individuals who make investment decisions on the basis of old purchase prices, inappropriate ...
www.fpanet.org/ToolsResources/ArticlesBooksChecklists/Articles/FinancialPlanning/AnchoringBiasThePowerofArbitraryNumbers/
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10 Anchoring effect - social cognition cologne
If so, your decision may be biased by one of the most remarkable influ- ences on human judgement, namely the anchoring effect (Tversky &. Kahneman, 1974).
social-cognition.uni-koeln.de/scc4/documents/PsychPr_04.pdf
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anchoring bias - Definition of anchoring bias - YourDictionary
Basing a judgment on a familiar reference point that is incomplete or irrelevant to the problem being solved. For example, a consumer judges the relative value ...
www.yourdictionary.com/anchoring-bias
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Learning About Anchoring Bias with Joe Haggerty and Cam Charron
Aug 3, 2013 ... Cam Charon wrote an article about Anchoring bias, and did some analysis on Benoit Pouliot. Joe Haggerty dismissed it, and may have been ...
www.pensionplanpuppets.com/2013/8/3/4584966/learning-about-anchoring-bias-with-joe-haggerty-and-cam-charron-news-notes-rumors-august-3
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(2006). The anchoring and adjustment heuristic - Cornell University ...
adjustment-based Anchoring biases has only recently been provided, and the causes of insufficient adjustment remain unclear. This research was designed to ...
psych.cornell.edu/sites/default/files/Epley%26Gilo.06.pdf
Search results for "Anchoring bias"
Google: approx. 796.000
Anchoring bias in science
Behavioral Finance: Key Concepts - Anchoring | Investopedia
The concept of anchoring draws on the tendency to attach or "anchor" our ... In a 1974 paper entitled "Judgment Under Uncertainty: Heuristics And Biases", ...
Chapter 10 - Anchoring and adjustment biases - University ...
Summary. When people have an obvious anchor, they may estimate probabilities using Tversky and Kahneman's (1974, p. 1128) anchoring and adjustment ...
Anchoring effects in world university rankings: exploring biases in ...
Apr 1, 2011 ... Despite ongoing debates about their uses and validity, university rankings are a popular means to compare institutions within a country and ...
[PDF]Anchoring effects in world university rankings: exploring biases in ...
May 1, 2010 ... Anchoring effects in world university rankings: exploring biases in reputation scores. Nicholas A. Bowman • Michael N. Bastedo. Published ...
Irrationality or Efficiency of Macroeconomic Survey Forecasts? - SSRN
Sep 20, 2012 ... Implications from the Anchoring bias Test. Dieter Hess. University of Cologne - Department of Corporate Finance; University of Cologne ...
[PDF]On Inferring Demand for Health Care in the Presence of Anchoring ...
Nov 1, 2012 ... Presence of Anchoring and Selection Biases. Jay Bhattacharya. ∗. Adam Isen. †. ∗Stanford University and NBER, jayanta1296@gmail.com.
[PDF]The Role of Anchoring Bias in the Equity Market: Evidence from ...
seminar participants at the HEC Paris, the Hong Kong University of Science ... be affected by such Anchoring bias when they estimate the future profitability of a ...
[PDF]The Brand Anchoring Effect: A Judgment Bias Resulting from Brand ...
Tobias Langner, Justus Liebig University Giessen, Germany. EXTENDED ABSTRACT. Introduction. Anchoring refers to a biased judgment on a stimulus based ...
[PDF]The Fragile Basic Anchoring Effect - Communication Cache
Rutgers University, USA. ABSTRACT. The Anchoring bias, the effect of uninformative anchor numbers on judgments, is a robust finding. In experiments yielding ...
Burn-in, bias, and the rationality of anchoring - NIPS
ETH Zurich; University of California, Berkeley; Stanford University. Poster: Burn-in , bias, and the rationality of anchoring. 7:00pm - 12:00am Monday, December ...
Books on the term Anchoring bias
organisational behaviour in Southern Africa, 2nd edition
organisational behaviour in Southern Africa, 2nd edition
Stephen P. Robbins, 2009
Consistent with the Anchoring bias, the median awards were $15 million and $50 million, respectively.44 Consider the role of anchoring in negotiations. Any time a negotiation takes place, so does anchoring. As soon as someone states a ...
Predispositions and Foreign Policy Surprises: Assessing the Impact ...
Predispositions and Foreign Policy Surprises: Assessing the Impact ...
Scott A. Helfstein, 2008
If the Soviets fell prey to Anchoring bias, then their posterior belief would be something between 43% and 60%. If the Soviet Anchoring bias were 0.5, then they would weigh the prior belief and Bayesian posterior belief equally. The Soviets ...
Stock Exchanges, IPO's and Mutual Funds
Stock Exchanges, IPO's and Mutual Funds
E. Klein, 2005
forecast horizon, i.e. the farther away the period being forecasted the more the conservatism bias. Thus, initial estimates are low, and any amendment to the estimate is incomplete (anchored). Also, the farther away the period being forecasted ...
Thinking, Fast and Slow
Thinking, Fast and Slow
Daniel Kahneman, 2011
Major New York Times bestsellerWinner of the National Academy of Sciences Best Book Award in 2012Selected by the New York Times Book Review as one of the best books of 2011A Globe and Mail Best Books of the Year 2011 TitleOne of The ...
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Blog posts on the term
Anchoring bias
Learning About Anchoring Bias with Joe Haggerty and Cam Charron - Pension Plan Puppets
Cam Charon wrote an article about Anchoring bias, and did some analysis on Benoit Pouliot. Joe Haggerty dismissed it, and may have been influenced by Anchoring bias when he did so. It's a little funny.
www.pensionplanpuppets.com/2013/8/3/4584966/learning-about-anchoring-bias-with-joe-haggerty-and-cam-charron-news-notes-rumors-august-3
Anchoring bias, or ‘why do fans seem to hate on their teams best players?’ | Backhand Shelf | Blogs | theScore.com
blogs.thescore.com/nhl/2013/07/29/anchoring-bias-or-why-do-fans-seem-to-hate-on-their-teams-best-players/
The Anchoring Effect: How The Mind is Biased by First Impressions — PsyBlog
A psychological bias that illuminates how we negotiate, predict our emotions, agree a price and much more…
www.spring.org.uk/2013/05/the-anchoring-effect-how-the-mind-is-biased-by-first-impressions.php
Overcharging Crimes and Anchoring Bias
In psychology, Anchoring bias refers to the excessive influence exerted on our judgments by the first piece of information we're presented. For example, if the first price quoted for an item is very high, people will, on average, assume a greater value for an object than they would assume if the first price quoted is much lower. We use the initial information, the high price or the low price, as an anchor or reference point for subsequent judgments of value....
drx.typepad.com/psychotherapyblog/2013/07/overcharging-crimes-and-anchoring-bias.html
Anchoring Bias And ‘A Market P/E’ « Silver For The People – The Blog
www.brotherjohnf.com/archives/204588
Anchoring Bias | An Introductory guide on Forex Trading for beginners
www.introforextrading.com/anchoring-bias/
Anchoring Bias And ‘A Market P/E’ | Retirement Investments — MyPlanIQ
Kate and William had a boy. Our bet on a name is George, but only because that appears to be the odds-on favorite among the London bookies.
www.myplaniq.com/articles/20130724-anchoring-bias-and-a-market-pe/
Pension Plan Puppets: Learning About Anchoring Bias with Joe Haggerty and Cam Charron - LockerPulse
Maple Leafs News: [...] awareness of the effects of biases has done little to improve the quality of business decisions at either ...
www.lockerpulse.com/News/Learning-About-Anchoring-Bias-with-Joe-Haggerty-and-Cam-Charron-S7648760/
An Anchor for Your Decisions » The Seapine View
An Anchor for Your Decisions.
blogs.seapine.com/2013/05/an-anchor-for-your-decisions/
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