It happens just about every time I go to a restaurant with my daughter. I open the menu and scan the options. Then I glance at the children’s menu. Oftentimes, the menu is pretty similar, with the same pasta and tomato sauce. But the items on the children’s menu are usually less expensive, and I’ll think to myself: Wow, good deal.
Don’t Let Anchoring Bias Weigh Down Your Judgment
Too often, we overvalue available — but ultimately irrelevant — information.
August 30, 2022
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Summary.
Even expert decision makers who should know better can fall into the trap of anchoring. That’s the cognitive bias where our minds assign too much weight to information that is easily accessible but unfortunately irrelevant. Anchoring can prove costly in negotiations and key financial decisions. However, strategies such as research, critical thinking, and zero-based budgeting can help keep our thinking well-grounded. It’s even possible to understand and use the anchoring bias of others to your advantage in negotiations.
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Decision Making Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Decision Making. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Practical ways to improve your decision-making process.