This bias influences subsequent evaluations by creating a frame of reference that skews perception, even if the anchor is arbitrary or unrelated to the decision at hand. For example, when negotiating a salary, the first number presented often sets the tone for the final agreement, regardless of its fairness. Similarly, a high initial price tag on a product can make a discounted price seem more reasonable, even if the discount isn’t substantial.
The anchoring effect distorts rational decision-making by making people overly dependent on the anchor, leading to biased judgments and less critical evaluation of additional information. This can result in suboptimal choices, as individuals fail to adjust sufficiently from the initial anchor to reflect actual value or relevance.
Advertisers, negotiators, and propagandists often exploit the anchoring effect to shape perceptions and influence behavior. For instance, a politician might present an extreme policy proposal as an anchor, making a subsequent, less extreme proposal seem more moderate and acceptable by comparison. This tactic capitalizes on the audience’s natural inclination to compare new information to the anchor rather than evaluating it independently.
