Have you ever made a purchase based on the "average price" of an item, thought you got a great deal and realized you could have bought it for even less somewhere else? Have you ever negotiated your ...

Discover the anchoring effect: a cognitive bias where initial information unduly influences decision-making and perceptions ...

An anchor is a trigger that creates a response in your subject. You can set anchors for yourself; for example, an alarm clock that prompts you to wake up and turn off the alarm. A good salesperson or ...

As consumers, we’re often unaware of how much our spending decisions are influenced by cognitive bias, according to personal finance author Emily Guy Birken. “The first time we hear a price for ...

Even with an MBA from the top business school, the top leader of a company can still make poor decisions. It does not matter how much information he has at his disposal. If he relies on the wrong ...

Central bankers often assert that low inflation and anchoring of inflation expectations are good for economic growth (Bernanke 2007, Plosser 2007). We test this claim using panel data on sectoral ...

Anchoring effects refer to a systematic bias in human cognition whereby initial information or reference points unduly influence subsequent judgements and decisions. This phenomenon has been ...