Anchoring Bias: Why Initial Information Shapes Every Decision

Anchoring bias occurs when the first piece of information we receive—whether relevant or arbitrary—sets a mental “anchor” that influences all later judgments. For example, the first price you hear for a product can shape what you consider “cheap” or “expensive,” even if the anchor was artificially inflated or strategically chosen.

Anchors create cognitive inertia. Once established, they skew interpretation: a salary offer seems fair or unfair based on the first number mentioned; a time estimate feels reasonable or excessive depending on the initial expectation; even harmless guesses become weighted toward the first suggestion heard.

Anchoring affects negotiations, planning, forecasting, and consumer behavior. Skilled negotiators intentionally set high anchors to tilt expectations. Marketers use anchors in pricing structures. Students set anchors for studying difficulty based on early impressions.

Breaking anchoring bias requires delaying judgment. Pausing to gather independent data or consulting an outside benchmark helps detach decisions from the first number or phrase introduced.