However, when the anchor value doesn't actually relate to the topic or accurately represent reality, it can affect people's ability to arrive at sound conclusions. Anchors can help people form reasonable estimates and make educated guesses. It's normal to use existing information to establish an opinion or make a tough decision. Effects of anchoring biasĪnchoring bias can lead to many effects, and not all of them are negative. This can lead to skewed perceptions and error-prone decision-making. They're more likely to remember or accept details that reinforce the anchor. The selective accessibility theoryĪnother theory says anchoring bias occurs because the anchor primes people to notice and believe information that supports their initial perception of a subject. These findings contrast with results for other forms of bias because, most often, other types of logical fallacies appear when individuals are happier. Those in sad or foul moods seem to rely more heavily on anchors than those in cheerful moods. Some studies have reportedly revealed that mood can also affect people's tendency to give added significance to anchoring information. Their adjustments rarely make significant enough departures from their leading point of reference. The downfall of this is that, often, people's adjustments rely too strongly on the leading value. The anchor-and-adjust hypothesis claims that when people are uncertain about a decision, they use an initial value as the basis for their future judgments. There are a few working theories about why anchoring bias occurs: The anchor-and-adjust hypothesis Related: 22 Types of Cognitive Bias and How They Affect The Workplace Why does anchoring bias occur? If the next car they see is only $9,000, they might view this car as cheap, regardless of the actual value of the car. Rather than viewing new information objectively, victims of anchoring bias compare any new information they receive to their reference point, which may not always be an accurate representation of a topic.įor example, someone shopping for a used car might see a car for sale for $13,000. Other times, anchoring bias skews people's abilities to come to logical conclusions, make accurate estimates or select suitable choices. Sometimes, this can lead to more informed decision-making. What is anchoring bias?Īnchoring bias is the common inclination people have to make decisions based on previously accepted information or the first piece of information they learn about a topic.
#The anchoring bias how to#
In this article, we explain what anchoring bias is and when it occurs, show you how to recognize instances of bias with helpful examples and offer tips for overcoming anchoring bias. Anchoring bias is a common bias that can affect your choices, opinions and assumptions. Noticing examples of the many types of bias can help you identify when certain factors are influencing your thinking. Unconscious bias can affect people's decision-making, expectations and perception of events.