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Anchoring
(redirected from Anchoring and adjustment)

   Also found in: Wikipedia 0.01 sec.
Anchoring
The act of basing an investment decision on irrelevant information. For example, if one bases the value of a stock on its price a year ago, one is practicing anchoring. This can be a dangerous practice, but it is also easy to do. Anchoring is a concept in behavioral economics, which states that people often make decisions based on their perceptions and feelings in addition to (and sometimes instead of) facts.


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We expect a smaller anchoring effect in this experiment, as semantic priming is likely to be a weaker activator of anchoring and adjustment than numerical anchors.
See Nicolas Epley & Thomas Gilovich, Putting Adjustment Back in the Anchoring and Adjustment Heuristic: Differential Processing of Self-Generated and Experimenter-Provided Anchors, 12 PSYCHOL, SCI.
of anchoring and adjustment bias in familiar settings, [8] followed by a replication study by Diaz and Hansz involving unfamiliar settings.
 
 
 
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