anchoring

In negotiations, “anchoring” refers to the common tendency of giving undue weight to the first value or number put forth, and to then inadequately adjust from or counter the first value or number, or the “anchor.” 

Thus the “anchoring bias” is often a part of a negotiating strategy. By dropping a strategic “anchor,” negotiators are able to frame the negotiation to their favor. For example:

 If Person A enters into a negotiation with Person B  with the hopes of a salary of $80,000 and is initially offered a salary of $30,000, Person A may find themselves countering with $55,000 due to the anchor, which is far less than Person A originally hoped for.

The anchoring effect can and is used in the courtroom on both juries and judges. 

[Last updated in June of 2022 by the Wex Definitions Team]