anchoring

In negotiations , “anchoring” refers to the common tendency of giving undue weight to the first value or number put forth, and to then inadequately adjust from or counter the first value or number, or the “anchor.”

Thus, the “anchoring bias ” is often a part of a negotiating strategy. By dropping a strategic “ anchor ,” negotiators are able to frame the negotiation in their favor. For example:

If Person A enters into a negotiation with Person B with the hopes of a salary of $80,000 and is initially offered a salary of $30,000, Person A may find themselves countering with $55,000 due to the anchor, which is far less than Person A originally hoped for.

The anchoring effect can and is used in the courtroom on both juries and judges .

[Last reviewed in December of 2024 by the Wex Definitions Team ]

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