A well-known cognitive bias in negotiation and in other contexts, the anchoring bias describes the common tendency to give too much weight to the first number put forth in a discussion and then inadequately adjust from that starting point, or the “anchor.” We even fixate on anchors when we know they are irrelevant to the discussion at hand. Platipus has created a number of standard pipe anchoring solutions that are perfect for small and large pipelines. Electricity & Communication Transmission & Distribution Platipus has developed a range of anchor systems ideal for upgrading or refurbishing distribution networks. Anchoring.com is dedicated to everything anchoring and docking. Since 2001, we've helped boaters with every need they have while at anchor or at the dock. We'll help you with everything from picking the perfect anchor for your boat, to picking the right fender setup to keep you protected while at the dock. Why shop at Anchoring.com?

• The Anchoring Trap
• The Anchoring Effect
• The Anchoring Bias
• Anchoring Economic Definition
• The Anchoring Effect Psychology

The anchoring effect is one of the most solid tested phenomena in the world of experimental psychology. Daniel Kahneman and Amos Tversky carried out a good number of experiments, which conclusions you can find in the book Thinking, Fast and Slow.

It is a cognitive bias which takes place when we consider a particular value of an unknown quantity before estimating such quantity. The value we have considered or that have been shown to us before, strongly determines the estimate we are going to make, which will always be relatively close to that previous value, which is called the anchor.

Once the anchor has been established, we evaluate whether it’s high or low and then we adjust our estimate to that amount. This mental process finishes early, because we are not sure of the real amount. Therefore, our estimation is not usually far from the anchor.

We have a huge tendency to use the small pieces of information that we are offered to trigger decisions and estimates.

For example, if someone asks you if Gandhi was over one hundred and four years old when he died and then asks you how old you think Gandhi was when he died, you will make a much higher estimate than if you had been asked first if Gandhi was over forty-four years old when he died.

In the same way, when you make an estimate of the price of something, you are influenced by the initial price they ask for. Even if you think you’re one of those who do not let themselves be influenced, a house will seem more valuable to you if it has established a high price than if it has a low price. I’m pretty sure that you’re tired of seeing images like this in the online world:

The effects of anchoring are used in a usual and quite effective way in marketing. The seller always makes the first move by fixing the price of a product or service, and gains advantage in the negotiation, since your estimate of the product value will be unconsciously anchored on that price. From there, a discount or a much better offer if you buy now, will be hard to resist even if the product remains expensive.

This effect is so strong that it reaches absurd limits. In fact, your judgment will be seriously influenced by any number, even if it is not informative and has no relation to the amount you are estimating. In a disturbing experiment, a fair number of judges were asked to establish a prison sentence for a woman who had made a robbery. Before answering loaded dice were thrown on the table so that the result was always going to be a 3 or a 9. The judges which got a 9 proposed a sentence of 8 months of prison, on average. The average sentence of the judges who got a 3 was of 5 months of prison.

How to avoid this bias? It is frankly difficult, if not impossible. In the case of a negotiation, you must focus on the minimum amount that the opponent would accept, or on what it would mean for the opponent not to reach an agreement. In all other situations, you will be aware of the anchor and you will think that it does not affect you, but you will be deceiving yourself.

CNN Announces New Washington-Based Anchor Roles

CNN today announced new anchor roles for its Washington-based programs.

Beginning in April, Jake Tapper’s program The Lead with Jake Tapper will expand to 4-6 p.m. ET nightly. In addition, he will continue in his role on Sunday mornings, now co-anchoring State of the Union with Jake Tapper and Dana Bash. He will also serve as the network’s lead anchor for all major Washington events.

Wolf Blitzer will continue to anchor the network’s signature evening newscast, The Situation Room with Wolf Blitzer, now airing from 6-7 p.m. ET nightly. The program will be seen around the world, simulcast on the CNN US and CNN International networks. He will also have a principal anchor role for all major breaking news and continue to host CNN special reports.

Dana Bash has been named co-anchor of the network’s Sunday morning newsmaker show, now called State of the Union with Jake Tapper and Dana Bash. Tapper and Bash will each anchor two Sundays a month, beginning January 24th. In addition, Bash will continue as the network’s chief political correspondent and will also host quarterly primetime interview specials.

The Anchoring Trap

Abby Phillip will become the anchor of Inside Politics Sunday with Abby Phillip, from 8-9 a.m. ET on Sundays, beginning January 24th. Phillip has also been named the network’s senior political correspondent.

The Anchoring Effect

John King will continue to host Inside Politics with John King weekdays from 12-1 p.m. ET. The network’s chief national correspondent, he will also continue to have a key role in all political coverage.

The Anchoring Bias

Jim Acosta has been named anchor and chief domestic correspondent for CNN. His anchoring duties will be on the weekends with more details coming soon.

Anchoring Economic Definition

Pamela Brown will become the anchor of CNN Newsroom on Saturdays and Sundays from 6-9 p.m. ET, beginning January 23rd. Brown will also serve as a senior Washington correspondent for CNN.

The Anchoring Effect Psychology

###