Decoding the Anchoring Effect | How Prices Influence Your Choices

The anchoring effect is a cognitive bias where people rely too much on the first piece of information (the "anchor") they encounter when making decisions.

For example, if you're buying a car and the first price you see is $20,000, you'll tend to base your judgments and comparisons on that number, even if other cars have different prices. This initial number influences your thinking more than it should.

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