The anchoring effect is a psychological phenomenon where individuals' judgments or decisions are influenced by an initial reference point or 'anchor', which might be irrelevant. This effect manifests in both numeric and non-numeric situations, impacting how estimates are adjusted based on the initially observed values. For example, seeing a higher-priced car next to a lower-priced model can lead to the latter seeming more reasonable, even if it's still above market value.
In a study by Daniel Kahneman and Amos Tversky, participants estimated the product of numbers based on the sequence they were presented with. Those given a smaller initial number guessed much lower overall than those given a larger initial number, demonstrating the influence of the anchor on their estimates.
To counter the anchoring effect, consider the opposite viewpoint of your initial anchor. This method, known as the consider-the-opposite (COS) strategy, encourages individuals to question their preexisting beliefs and mitigate the bias.