Anchoring bias psychology is a cognitive bias that can affect decision-making. It occurs when people rely too heavily on a single piece of information to decide, usually a reference point that is too easy or comfortable to remember. This can lead to decisions based on an inaccurate assumption, ultimately leading to poor outcomes.
Anchoring bias can significantly impact decision-making processes, including financial investment, healthcare, and professional decisions. The simplest form of anchoring bias is referred to as the anchoring effect. This phenomenon occurs when people are asked to estimate the value of a new item, such as a car or house, based on the value of an already familiar item. As a result, people are more likely to estimate the new item’s value as similar to the already-known item’s value.
The anchoring effect can also occur when people make choices that have a financial or practical impact. For example, people may anchor their decision to purchase a car based on the price offered rather than considering other factors such as the car’s features or fuel efficiency.
The anchoring bias can also impact decision-making when it comes to professional decisions. For example, a doctor may anchor their decision to perform surgery based on the number of previous surgeries they have performed in the same area. In this case, the doctor may be less likely to perform the surgery if the patient has a rare medical condition not typically associated with more surgeries.
The anchoring bias can majorly impact the quality of decisions made. As a result, it is important to be aware of and avoid the effects of anchoring bias to make the best possible choices.
