Anchoring Bias: The First Number Wins
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Tversky & Kahneman Contributor
The Gandhi Experiment
Group A was asked: “Did Gandhi die before or after age 9?” Group B was asked: “Did Gandhi die before or after age 140?” Then both were asked to guess his age of death. Group A guessed significantly lower than Group B. The irrelevant numbers (9 and 140) acted as anchors.
Negotiation Tactics
Always state your price first. If you are selling, set a high anchor. If you are buying, set a low anchor. Even if the other person knows what you are doing, their brain cannot ignore the anchor. It pulls the final price in its direction.
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Tversky & Kahneman
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