Discover how anchoring impacts financial decisions and investing. Learn key concepts and examples of this behavioral finance term.

Imagine making a crucial decision only to realize later that your choice was heavily influenced by the first piece of information you encountered. This cognitive bias, known as the anchoring effect, ...

The anchoring effect, a psychological bias, demonstrates how the first piece of information encountered significantly ...

A powerful psychological bias called anchoring influences our decisions. It means the first number we see often becomes a ...

What is the average price of a textbook in the nearest college campus bookstore? Before you answer, is it greater or less than $7,128.53? Most people quickly agree that the average price of a textbook ...

The function of the anchor on a ship is to keep the vessel from sailing away. But in the case of the ‘anchoring effect’, it keeps the mind from sailing towards different starting points for the ...