What are examples of anchoring bias?

By looking at examples of anchoring bias that you may come across in everyday life, you can notice a fundamental aspect of humans’ thought processes. Sometimes, we think in such basic terms that we don’t even analyze our decisions after coming to a conclusion. This tendency to use initial reference points to make decisions can lead us astray.

What causes bias in decision-making?

There are a few working theories about why this kind of bias occurs, including: The anchor-and-adjust hypothesis claims that when you're uncertain about a decision, you use an initial value as the basis for their future judgments. The downfall of this is that sometimes, your adjustments rely too strongly on the leading value.

How do personality traits affect anchoring bias?

Similarly, personality traits such as openness to experience tend to mitigate the effects of anchoring bias. Individuals high in openness tend to be more receptive to new information and less likely to rely solely on the initial anchor (Caputo, 2014). Experience can also play a role in anchoring bias.

How do you reduce Anchor bias?

One way to reduce anchor bias is to collect more information. Gathering knowledge can help you make informed decisions based on reality rather than an unsubstantial anchoring fact. For example, if you're browsing a furniture store's website, you might notice a couch for sale that originally cost $3,000.