0 saved
8.5K views
Let's say I told you that joining ModelThinkers costs US$200. It doesn't — it actually costs US$60.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Amicitiam autem adhibendam esse censent, quia sit ex eo genere, quae prosunt. Itaque quantum adiit periculum! ad honestatem enim illum omnem conatum suum referebat, non ad voluptatem.
Tu autem, si tibi illa probabantur, cur non propriis verbis ea tenebas? Unum nescio, quo modo possit, si luxuriosus sit, finitas cupiditates habere. Verba tu fingas et ea dicas, quae non sentias? Nulla erit controversia. Duo Reges: constructio interrete. Eam tum adesse, cum dolor omnis absit; Equidem etiam Epicurum, in physicis quidem, Democriteum puto. Si sapiens, ne tum quidem miser, cum ab Oroete, praetore Darei, in crucem actus est.
Quae hic rei publicae vulnera inponebat, eadem ille sanabat. Quae autem natura suae primae institutionis oblita est? O magnam vim ingenii causamque iustam, cur nova existeret disciplina! Perge porro. Itaque sensibus rationem adiunxit et ratione effecta sensus non reliquit. Aperiendum est igitur, quid sit voluptas; Quae in controversiam veniunt, de iis, si placet, disseramus.
- Delay and set your own anchor to interrupt anchoring bias.
Anchoring can function as a cognitive b ...
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quid ei reliquisti, nisi te, quoquo modo loqueretur, intellegere, quid diceret? Alterum significari idem, ut si diceretur, officia media omnia aut pleraque servantem vivere. Sin tantum modo ad indicia veteris memoriae cognoscenda, curiosorum. Quoniam, si dis placet, ab Epicuro loqui discimus. Sed emolumenta communia esse dicuntur, recte autem facta et peccata non habentur communia. Duo Reges: constructio interrete. Ne discipulum abducam, times. Nec enim, omnes avaritias si aeque avaritias esse dixerimus, sequetur ut etiam aequas esse dicamus.
Bona autem corporis huic sunt, quod posterius posui, similiora. Et quidem Arcesilas tuus, etsi fuit in disserendo pertinacior, tamen noster fuit; Non quaeritur autem quid naturae tuae consentaneum sit, sed quid disciplinae. Potius inflammat, ut coercendi magis quam dedocendi esse videantur. Graccho, eius fere, aequalí? Neque solum ea communia, verum etiam paria esse dixerunt. Quid loquor de nobis, qui ad laudem et ad decus nati, suscepti, instituti sumus? In eo enim positum est id, quod dicimus esse expetendum. Atqui iste locus est, Piso, tibi etiam atque etiam confirmandus, inquam;
Quis suae urbis conservatorem Codrum, quis Erechthei filias non maxime laudat? Praeclare hoc quidem. Quonam modo? Aliud igitur esse censet gaudere, aliud non dolere. Sed in rebus apertissimis nimium longi sumus. Etenim semper illud extra est, quod arte comprehenditur.
The Anchoring Effect has been consistently replicated in a number of experiments and studies, with some variations. For example, there remains debate on the impacts of experience in a domain, and in the cognitive ability of participants — with studies in these areas returning mixed results.
That said, it is a largely accepted phenomenon.
Guess Gandhi's age.
In a 1997 experiment by Strack and Mussweiler, the two groups of participants to guess the age of Mahatma Gandhi when he died. Before the groups answered, they were anchored by preceding questions. The questions and results were as follows:
- Did Mahatma Gandhi die before or after the age of 9 years old? How old was he when he died? Average answer = 50 years.
- Did Mahatma Gandhi die before or after the age of 140 years old? How old was he when he died? Average answer = 67 years.
Anchoring in negotiations.
This excellent description by Harvard Law Professor Guhan Subramanian outlines his recommendations and experience in using and countering anchoring in negotiations. From defusing anchoring to justifying an offer that you want to become an anchor.
Anchoring and the law.
In one study, a prosecutor's extreme sentencing demand resulted in 27 to 60% longer prison sentences. Similarly, a journalist's question about sentencing resulted in 32% longer prison sentence. See this article for more examples in the legal context.
Anchoring and the breadmaker.
A company called Williams-Sonoma famously was struggling to sell there new bread maker which was priced at $279. Rather than change the product, or even lower the price, they did something surprising. They started selling a second breadmaker for $429. The result? Few people bought the expensive bread maker but the sales of the (now) cheaper one doubled. While it's hard to know the exact motivation here, it isn't a stretch to posit that the anchoring heuristic was at play — and the 'cheaper' bread maker suddenly seemed like a bargain.
The anchoring heuristic is a cognitive bias that has a range of implications.
Use the following examples of connected and complementary models to weave the anchoring heuristic into your broader latticework of mental models. Alternatively, discover your own connections by exploring the category list above.
Connected models:
- Fast and slow thinking: to understand broader cognitive biases.
- Availability heuristic: initial information tends to be part of the ‘most available’ information, though availability is broader.
Complementary models:
- EAST framework: incorporate anchoring in nudging strategies.
- BATNA & ZOPA: incorporating anchoring into negotiations.
- RICE score: consider the impact of anchoring in estimates.
- 4Ps of marketing: using anchoring in pricing strategy.
The anchoring heuristic is also known as anchoring bias, the anchoring effect and the anchoring and adjustment heuristic.
The anchoring and adjustment heuristic was first identified by Daniel Kahneman and Amos Tversky in 1974. The ‘adjustment’ refers to the tendency for subsequent judgements to change based on the initial anchor. We have shortened this heuristics name to the more familiar ‘anchoring heuristic’. See their book Thinking, Fast and Slow for more.
My Notes
Oops, That’s Members’ Only!
Fortunately, it only costs US$5/month to Join ModelThinkers and access everything so that you can rapidly discover, learn, and apply the world’s most powerful ideas.
ModelThinkers membership at a glance:
“Yeah, we hate pop ups too. But we wanted to let you know that, with ModelThinkers, we’re making it easier for you to adapt, innovate and create value. We hope you’ll join us and the growing community of ModelThinkers today.”
You Might Also Like:
- Actionable summaries of the world's most powerful ideas.
Subscribe now and download this practical guide to transform your thinking, plus recieve one short, powerful and actionable idea in your inbox each month.