Anchoring Effect

At its core, the anchoring effect is a psychological heuristic that influences the way we interpret presented information. For example, if we are told to guess a person's weight after being told their height, we will predict the weight based on the anchor (height). The same principle applies to a wide range of situations such as negotiations, where the first price offered often serves as an imaginary anchor against which resulting offers are judged. It's a bias that occurs subconsciously, showing how our perceptions and decisions are influenced by contextual factors.