What is Anchoring Bias Effect
Anchoring Bias: How Our Minds Get Stuck in Cognitive Ruts Introduction In the vast realm of human psychology, our brains often employ shortcuts to make sense of the world around us. One such cognitive shortcut, known as the anchoring bias, plays a significant role in shaping our decisions and judgments. Anchoring bias refers to the human tendency to rely too heavily on the first piece of information encountered when making subsequent judgments or estimates. This blog explores the anchoring effect, its mechanisms, real-world examples, and how we can mitigate its impact on our decision-making process. Understanding Anchoring Bias The anchoring bias stems from the fundamental human need to simplify complex information rapidly. When faced with a decision, our brains seek a starting point, or "anchor," which serves as a reference point for subsequent evaluations. This anchor significantly influences our subsequent judgments, leading us to become overly reliant on it, even if it l...