Used Car Price as an Anchor Example

The anchoring effect is a cognitive bias that influences you to rely too heavily on the first piece of information you receive, whereby initial exposure to a number or concept serves as a reference point and influences subsequent judgments. 

Definition Minute is a new subset of the Behavioral Economics in Marketing podcast. In these mini-episodes, I will define economic theories, in a minute or two. The topics will be review, introductory or discrete in nature.