Discover how anchoring impacts financial decisions and investing. Learn key concepts and examples of this behavioral finance term.

Anchoring bias happens when individuals become too focused on the first piece of information that they receive (the “anchor”) when making decisions, even if the information is irrelevant or outdated.

Have you ever made a purchase based on the "average price" of an item, thought you got a great deal and realized you could have bought it for even less somewhere else? Have you ever negotiated your ...

Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. We all know that marketing is about persuasion. And what better way to persuade someone to ...

Imagine making a crucial decision only to realize later that your choice was heavily influenced by the first piece of information you encountered. This cognitive bias, known as the anchoring effect, ...