Anchoring Bias Notes: Definitions & Explanations PDF | Download eBooks

Study Anchoring Bias lecture notes PDF with organizational behavior definitions and explanation to study What is Anchoring Bias?. Study anchoring bias explanation with organizational behavior terms to review organizational behavior course for online MBA programs.

Anchoring Bias Notes:

Anchoring bias or focalism is a term used in psychology to describe the common human tendency to rely too heavily, or "anchor," on one trait or piece of information when making decisions. During normal decision making, individuals anchor, or overly rely, on specific information or a specific value and then adjust to that value to account for other elements of the circumstance. Usually once the anchor is set, there is a bias toward that value. Take, for example, a person looking to buy a used car - they may focus excessively on the odometer reading and the year of the car, and use those criteria as a basis for evaluating the value of the car, rather than considering how well the engine or the transmission is maintained. Anchoring or focalism is a cognitive bias where an individual depends too heavily on an initial piece of information offered when making decisions.

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