Anchoring: Definition in Psychology & Examples

By Beth Birenbaum, MPH
​Reviewed by Tchiki Davis, M.A., Ph.D.
Anchoring is a largely unconscious process where we rely heavily on the first piece of information we receive to make quick judgments. Read on to learn about its powerful effects on our perceptions, behavior, and decisions.
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Have you ever bought something believing you got a great deal but then realized later you actually paid too much? Or maybe you undervalued yourself in a salary negotiation? Or judged a person too quickly because they remind you of someone else, or because of their appearance? It’s probably due to a phenomenon called the anchoring effect, and it happens to all of us. 
Anchoring is a well-documented cognitive process that happens outside our awareness (Furnham & Boo, 2011). Anchoring affects our lives and behavior every day. In this article, we’ll explain how it works, describe its benefits and pitfalls, and explore what we can do to reduce its effects.​
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What Is Anchoring in Psychology? (A Definition)

Anchoring is the tendency to make rapid assessments based solely on the first piece of information encountered. It helps us to help make sense of the things around us when faced with uncertainty or time constraints (Tversky & Kahneman, 1974). 
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But we tend to give too much weight to this initial information or to previous experience, which leads to inaccurate perceptions and errors in decision-making. The initial piece of information becomes an “anchor”, and as the name suggests, we are pulled toward it and tend to stick close to it even after learning new information (APA, 2023).​

Examples of Anchoring

Anchoring in first impressions
​An example we’re all familiar with is judging others on first impressions. Studies show that we can make judgments about people’s personalities in milliseconds (Willis & Todorov, 2016). These rapid evaluations are based on facial expressions, our memories of other similar people, and even how we see ourselves (Willard & Markman, 2017). These things give a starting reference point and allow you to make quick decisions about how to respond when you don’t know someone well. Unfortunately, we also tend to base future judgments of the person on this initial, sometimes superficial impression, which in turn affects our behavior toward them (Willard & Markman, 2017).  

Here’s an example from my own experience. I tend toward shyness, so when I meet someone, my quietness is sometimes taken as coldness or aloofness. But the truth is, it just takes me a little time to become comfortable, especially in a group setting. Recently at a company outing, a coworker was hesitant to hug me goodbye, saying “I get the impression you’re not a hugger”. So I smiled and gave her a hug. (I hope she updated her impression.)

Anchoring in pricing & sales
Anchoring is used widely in sales. Sellers often set a price much higher than they expect to get. So, when they come down a bit, the buyer is more likely to go for it, even if it’s still overpriced. I know I’m a sucker for this. At discount clothing stores, I think I’m getting “such a deal!” if the tag shows the suggested retail price as much higher than what I’m paying, even though that original price could very well be arbitrary. 

Other examples of situations where anchoring occurs:
  • Salary negotiations
  • Making numerical estimates
  • Marketing 
  • Criminal sentencing
  • Medical diagnosis

This video shows several of the above anchoring examples and explains how it affects our judgments.

Video: Critical Thinking - Cognitive Bias: Anchoring

Why Is Anchoring Considered a Heuristic? ​

A heuristic is a shortcut or “rule of thumb” to help you evaluate a problem and draw conclusions quickly and easily. Anchoring is considered a heuristic because it provides a shortcut for judging situations quickly. Under pressure or time constraints, you may not have to take the time to evaluate details or gather more information before responding. It allows you to act in the moment, which is needed in some circumstances. It feels like intuition. ​

Benefits & Pitfalls of Anchoring ​

Benefits
As mentioned above, a benefit of anchoring is it allows for fast decision-making. It helps you make reasonable estimates and quick evaluations in complex situations when you have limited information or time. 

There’s likely an evolutionary advantage to being wired this way. For our ancestors, it was probably important to be able to recognize an aggressive facial expression quickly. It was probably not a good idea to take the time to gather more information and carefully think over whether this person was actually going to be aggressive or if they were just having a bad day. 

And in today’s environment, without a quick way of evaluating everyday situations, we’d spend way too much time and effort deliberating over small decisions. Some decisions may just not matter that much, such as what to have for lunch. Imagine taking the time to consider the pros and cons of each item on the menu and what factors may be influencing you. It’s probably fine to base your decision on your experience of what you’ve enjoyed previously.

Another benefit is that anchoring helps you to gauge quickly how others are feeling in social situations. If someone tells you they’ve just experienced a traumatic event such as the death of a loved one, or a happy occasion such as a marriage, we can make assumptions about how they’re feeling based on our own experiences—our memory is serving as the anchor in this case. From that knowledge, we can adjust our behavior accordingly. 

Pitfalls
The main pitfall is that anchoring leads to inaccurate conclusions or poor decisions because we disregard, or don’t even notice, potentially crucial information. In addition, it can also lead to self-fulfilling prophecies. We tend to only give credit to information that supports our initial judgment, and discard or invalidate information that doesn’t. It’s not hard to imagine how this can lead to biased judgments about other people or incorrect conclusions about situations. 
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Marketers also use anchoring to their advantage. Knowing that people don’t tend to veer far from initial information, they make sure the first price people see is high. In addition, anchoring is also what makes multiple-unit pricing successful. For example, if there’s a sale sign showing “4 apples for $5”, we’re more likely to buy 4 even if we can buy them for $1.25 each. We’ve latched on to the 4. And the same thing applies when we see a sign stating “limit 5 per customer”. That becomes the amount you want.

Anchoring in Negotiation

A classic example of anchoring in negotiation is buying a car. The car dealer sets the asking price much higher than what they’re aiming to sell it for, thus setting an anchor. So when they agree to come down a bit, the buyer thinks they got a deal, even if they’re still paying more than the car is worth. The buyer is operating from that original anchor and tends to see through that perspective. 

This also happens in salary negotiations. That’s why it’s probably to your advantage to be the first to set the salary range. And to ask for more than you’re expecting. That number is likely to stick in the employer's mind and they’ll tend to adjust from there. Of course, it can also occur in the opposite direction. Their offer may stick in your mind, leading you to underestimate your value in the position.​

What Is Anchoring and Adjustment?

Anchoring and adjustment is a more detailed description of what often happens with anchoring. It describes the process where you start with an initial piece of information as a guide, and then adjust away from that starting point as you get more information. This continues until you believe you’ve reached a plausible conclusion. 
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Sounds reasonable, right? However, studies show that while this is better than not adjusting at all, the results are often still inaccurate, particularly when processing time is limited. The problem is that we typically stop adjusting too soon (Teovanović, 2019).  And because we view the new information from the point of view of the anchor, we usually don’t evaluate new information objectively.

Examples in Healthcare
We usually have an idea about our chance of getting a specific disease which is often based on family history. Also, recent advancements in genetic testing for some diseases contribute to our perception of disease risk. These factors can create an anchor that we are resistant to adjust away from, even when we get different information from a healthcare provider (Senay & Kaphingst, 2008). This can be harmful because underestimating risk can lead to poor lifestyle choices, and overestimating can lead to excessive or unwarranted worry. 

A study suggests that this tendency to stick to our anchor can be reduced through “effortful thinking” (Senay & Kaphingst, 2008). This is thinking that is slow, controlled, and intentional. Unfortunately, worry reduces our ability to engage in this kind of critical thinking. (I’ve definitely felt my ability to think clearly go way down when I’m worried.) However, when patients have a more thorough and accurate understanding of their risks, worry can be decreased, allowing for the mind to evaluate calmly. This shows the importance of effective health communication.

Medical providers are just as susceptible to adjustment errors as patients. Unsurprisingly, most medical providers typically don’t expect patients to have the same level of knowledge of medical terminology that they have. So they adjust their language when explaining disease risks to patients. However, a study showed that often they don’t adjust far enough from their anchor (their medical knowledge), leaving patients to evaluate their risks according to their own subjective, and possibly misinformed, evaluations (Senay & Kaphingst, 2008), Which again emphasizes the importance of good communication.

How Does Anchoring Create Bias?

Anchoring creates bias because we jump to a readily accessible reference point to make quick judgments and then continue to give it too much weight (Berg & Moss, 2021). And even in the face of conflicting or modifying information, we tend to stick near the original assessment. 
In one study, even when researchers told the study participants to disregard the initial information given, participants still made judgments based on that anchor (Berg & Moss, 2021). This shows just how strong our brain’s tendency toward anchoring is. 

Strange as it sounds, even random unrelated information can hook your brain. In one study, participants were asked for the last two digits of their social security number and then asked how much they would spend on different products. People whose last two digits were higher indicated they would pay more (Ariely et al., 2006). Just thinking about the social security number created an anchor.

Bias in Courtroom Sentencing
Even judges, who are trained to be unbiased, are affected by anchoring when they are presented with a number before sentencing. And not just a number related to the length of the sentence, but even a random number. If they’re susceptible, who isn’t? This video does a great job of explaining and even gives some tips on how to break free of anchoring bias.

Video: What Sentence Would You Give: Watch for the Anchoring Bias

How Might We Overcome Anchoring Bias?

It can be difficult to overcome anchoring bias because our brains are wired for shortcuts. While we can’t eliminate them, we can reduce their effects, which leads to better, more informed decisions, and it can help you avoid incorrect (and sometimes harmful) assumptions about others. Here are some steps that can help:
  • The first step is to become aware of the anchor. (This can be the hardest part.) Take a step back, and consider whether you’re relying too much on the first thing you learn, a first impression, or a previous experience.
  • Delay making a decision. 
  • Challenge your initial impressions or conclusions. 
  • Do research, be open to new information, or listen to opposing arguments. Make the effort to think critically. 
  • Remember it’s okay to discard or modify initial judgments. We are all prone to biases. Recognizing this and revising your assessment is a sign of thoughtfulness and discernment, not weakness. ​

Articles Related to Anchoring

​Want to learn more? Check out these articles:

Books Related to Anchoring

If you’d like to keep learning more, here are a few books that you might be interested in.

Final Thoughts on Anchoring

Anchoring is necessary for fast decision-making when information or time is limited. However, it often leads us astray by predisposing us to block out or ignore other vital information. In addition, it often leads to biased evaluations of others or illogical conclusions.

Knowing that we are all susceptible to anchoring can help us be more aware of it, and perhaps encourage us to be more tolerant of others, especially when we encounter someone who sticks to their views despite evidence to the contrary. Furthermore, becoming more aware of anchoring effects can help us be less likely to judge others on first impressions alone. It may even improve our relationships and how we perceive ourselves.​​

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