What is anchoring bias in psychology?

Psychologists have found that people have a tendency to rely too heavily on the very first piece of information they learn, which can have a serious impact on the decision they end up making. In psychology, this type of cognitive bias is known as the anchoring bias or anchoring effect.

Why is information bias a problem?

That information is an anchor or reference point from which all other judgments or decisions are formed. This bias can lead to poor decisions and skewed judgments that are inaccurate or don’t fully account for subsequent information. This phenomenon was first described by the researchers Amos Tversky and Daniel Kahneman.

What causes bias in estimations?

The anchor, once set, has a strong influence, often leading to bias because adjustments are typically insufficient shifts from the initial anchor, resulting in estimations skewed towards the anchor.