Business · 2
What term describes a negotiating tactic where the first number put on the table heavily influences the final outcome of a deal?
Answer
Anchoring
Anchoring is a cognitive bias and negotiation tactic where the initial figure introduced in a discussion serves as a reference point, disproportionately pulling the final agreed number toward it. Research by Tversky and Kahneman established anchoring as one of the most powerful and consistent biases in decision-making.
💡 Did you know?
In one study, real estate agents shown a house with an artificially inflated listing price gave significantly higher appraisals than agents shown the same house at a lower price — even when told the listing price was arbitrary.
Other options people guess
- Bracketing
- Framing
- Escalation of commitment
Topics
- negotiation
- psychology
- decision-making
- strategy
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