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Many psychological findings are hard to replicate, but anchoring is easy to demonstrate and repeat.
Court judgements are routinely influenced by anchors, where initial numbers play a subconscious role in the judge’s mind. Salary negotiations are affected by the starting position, so it is always important to make the initial offer.
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When we walk into a store and see an Ultra HD Television costing upwards of $40,000, we usually feel as if it’s a complete waste of money and start to look at the other bargain options in the $1500 range. While we may think we are smart shoppers, we have been manipulated.
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Everyone is using the anchoring effect. Even when we try to sell a car, we initially put a price much higher than what we plan to get from it.
The most common example is when during online and offline sales, we see that the earlier, inflated price has a big red cross over it, and the new, ...
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Anchoring is an extremely strong bias, and even if we are aware of it, it still works. We can follow certain rules to avoid this highly prevalent and effective cognitive bias as much as possible:
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"In fact, the confidence of the people is worth more than money." ~ Carter G. Woodson
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