0 saved
11.6K 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. Itaque his sapiens semper vacabit. Atqui eorum nihil est eius generis, ut sit in fine atque extrerno bonorum. Sed mehercule pergrata mihi oratio tua. Bonum integritas corporis: misera debilitas. Vitiosum est enim in dividendo partem in genere numerare. Si de re disceptari oportet, nulla mihi tecum, Cato, potest esse dissensio. Duo Reges: constructio interrete. Sed quid attinet de rebus tam apertis plura requirere?
Occultum facinus esse potuerit, gaudebit; Omnes enim iucundum motum, quo sensus hilaretur. Non igitur potestis voluptate omnia dirigentes aut tueri aut retinere virtutem. At ille non pertimuit saneque fidenter: Istis quidem ipsis verbis, inquit; Tubulo putas dicere? Cum autem venissemus in Academiae non sine causa nobilitata spatia, solitudo erat ea, quam volueramus. Sed hoc sane concedamus.
Dat enim intervalla et relaxat. Quod non faceret, si in voluptate summum bonum poneret. Negare non possum. Gerendus est mos, modo recte sentiat. Quod si ita se habeat, non possit beatam praestare vitam sapientia. Qua igitur re ab deo vincitur, si aeternitate non vincitur? Et ais, si una littera commota sit, fore tota ut labet disciplina. Luxuriam non reprehendit, modo sit vacua infinita cupiditate et timore.
- 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. Quamquam te quidem video minime esse deterritum. Solum praeterea formosum, solum liberum, solum civem, stultost; Atque hoc loco similitudines eas, quibus illi uti solent, dissimillimas proferebas. Quid est enim aliud esse versutum? Quae cum praeponunt, ut sit aliqua rerum selectio, naturam videntur sequi; Res enim se praeclare habebat, et quidem in utraque parte. Duo Reges: constructio interrete. Manebit ergo amicitia tam diu, quam diu sequetur utilitas, et, si utilitas amicitiam constituet, tollet eadem. Fortasse id optimum, sed ubi illud: Plus semper voluptatis? Nihil enim iam habes, quod ad corpus referas;
Cum audissem Antiochum, Brute, ut solebam, cum M. Qui-vere falsone, quaerere mittimus-dicitur oculis se privasse; Quod quidem iam fit etiam in Academia. Amicitiam autem adhibendam esse censent, quia sit ex eo genere, quae prosunt. Vide igitur ne non debeas verbis nostris uti, sententiis tuis. Quid, si etiam iucunda memoria est praeteritorum malorum?
Est, ut dicis, inquam. Quae in controversiam veniunt, de iis, si placet, disseramus. Cupiditates non Epicuri divisione finiebat, sed sua satietate. Ampulla enim sit necne sit, quis non iure optimo irrideatur, si laboret? Quae cum magnifice primo dici viderentur, considerata minus probabantur. Idem etiam dolorem saepe perpetiuntur, ne, si id non faciant, incidant in maiorem.
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.