Anchoring & Adjustment : Malouff & Schutte had... - Deepstash

Anchoring & Adjustment: Malouff & Schutte had groups read a personal injury case. When the defence lawyer requested $100k the “jurors” awarded $90,333. A group with a £700k demand awarded $421,538. The original prices acted as anchors from which the groups adjusted down.

Ultimatum Game: Imagine you’re given £10 & asked to offer a 2nd person a split. If they accept, you both get your share. If not, neither do. Research by Werner Güth found most recipients reject offers of £2 or less. We’re willing to forgo gains if we think they’re unfair.

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claudiu_florea

A sparkling curious mind

William Poundstone offers many examples of how our perceptions of prices vary depending on cues, context and contrast.

The idea is part of this collection:

Behavioral Economics, Explained

Learn more about books with this collection

How to make rational decisions

The role of biases in decision-making

The impact of social norms on decision-making

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