Anchoring Bias

Anchoring Bias is the cognitive mechanism where the first piece of information we encounter on any topic becomes a mental reference point, disproportionately skewing all subsequent judgments—even when that anchor is clearly arbitrary. Research on salary negotiations confirms that the initial number put forward determines the final outcome in roughly 70% of cases, a far stronger effect than typical negotiation tactics. This bias is stronger than the Framing Effect; while framing shifts perception of identical data, anchoring sets a baseline that later information cannot easily dislodge. Retailers exploit this by marking a product down from $200 to $99, making the deal feel irresistible despite the $200 price being invented. Even doctors, when told a patient's age before reviewing symptoms, anchor their diagnosis differently, showing how the prime preloads the brain's reference point.