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Cognitive Biases

Anchoring as Priming Effect

Anchoring is a cognitive bias where an initial reference point (anchor) influences subsequent judgments by priming compatible information in memory, even when the anchor is absurd or irrelevant.

THE IDEA

ANCHORING AS PRIMING EFFECT

When Amos and I debated anchoring, I agreed that adjustment sometimes occurs, but I was uneasy. Adjustment is a deliberate and conscious activity, but in most cases of anchoring there is no corresponding subjective experience. Consider these two questions:

Was Gandhi more or less than 144 years old when he died?

How old was Gandhi when he died?

Did you produce your estimate by adjusting down from 144? Probably not, but the absurdly high number still affected your estimate. My hunch was that anchoring is a case of suggestion. This is the word we use when someone causes us to see, hear, or feel something by merely bringing it to mind. For example, the question “Do you now feel a slight numbness in your left leg?” always prompts quite a few people to report that their left leg does indeed feel a little strange.

Amos was more conservative than I was about hunches, and he correctly pointed out that appealing to suggestion did not help us understand anchoring, because we did not know how to explain suggestion. I had to agree that he was right, but I never became enthusiastic about the idea of insufficient adjustment as the sole cause of anchoring effects. We conducted many inconclusive experiments in an effort to understand anchoring, but we failed and eventually gave up the idea of writing more about it.

The puzzle that defeated us is now solved, because the concept of suggestion is no longer obscure: suggestion is a priming effect, which selectively evokes compatible evidence. You did not believe for a moment that Gandhi lived for 144 years, but your associative machinery surely generated an impression of a very ancient person. System 1 understands sentences by trying to make them true, and the selective activation of compatible thoughts produces a family of systematic errors that make us gullible and prone to believe too strongly whatever we believe. We can now see why Amos and I did not realize that there were two types of anchoring: the research techniques and theoretical ideas we needed did not yet exist. They were developed, much later, by other people. A process that resembles suggestion is indeed at work in many situations: System 1 tries its best to construct a world in which the anchor is the true number. This is one of the manifestations of associative coherence that I described in the first part of the book.

The German psychologists Thomas Mussweiler and Fritz Strack offered the most compelling demonstrations of the role of associative coherence in anchoring. In one experiment, they asked an anchoring question about temperature: “Is the annual mean temperature in Germany higher or lower than 20°C (68°F)?” or “Is the annual mean temperature in Germany higher or lower than 5°C (40°F)?”

All participants were then briefly shown words that they were asked to identify. They found that 68°F made it easier to recognize summer words (like sun and beach), and 40°F facilitated winter words (like frost and ski). The selective activation of compatible memories explains anchoring: the high and the low numbers activate different sets of ideas in memory. The estimates of annual temperature draw on these biased samples of ideas and are therefore biased as well. In another elegant study in the same vein, participants were asked about the average price of German cars. A high anchor selectively primed the names of luxury brands (Mercedes, Audi), whereas the low anchor primed brands associated with mass-market cars (Volkswagen). We saw earlier that any prime will tend to evoke information that is compatible with it. Suggestion and anchoring are both explained by the same automatic operation of System 1. Although I did not know how to prove it at the time, my hunch about the link between anchoring and suggestion turned out to be correct.

When to use it

  • In salary negotiations, the first number mentioned often sets the anchor, making subsequent offers revolve around that point.

  • In pricing strategies, retailers display high original prices to make sale prices seem more attractive, anchoring customers' perception of value.

  • In legal judgments, the amount of damages requested by the plaintiff can anchor the jury's award, even if the request is extreme.

  • In performance evaluations, the first piece of information about an employee (positive or negative) can anchor subsequent ratings.

FROM THEORY TO EVERYDAY LIFE

In practice

01

Gandhi's Age Anchor

When asked if Gandhi was more or less than 144 years old when he died, most people's estimates of his actual age are influenced by the absurdly high anchor, even though they know it is false.

02

Germany Temperature Anchor

Participants presented with a high anchor (20°C or 68°F) were faster to recognize summer-related words (sun, beach), while those with a low anchor (5°C or 40°F) were faster with winter-related words (frost, ski). The anchors selectively activate compatible memories.

03

Car Prices Anchor

When asked about the average price of German cars, a high anchor primed luxury brands (Mercedes, Audi), whereas a low anchor primed mass-market brands (Volkswagen).

✳

A MOMENT TO REFLECT

Put it to work.

  1. How might an initial anchor affect your estimate of the value of a house you are considering buying?

  2. In what ways could a negotiator use anchoring to influence the outcome of a salary negotiation?

  3. Can you recall a situation where you were influenced by an arbitrary anchor? How could you mitigate that influence?

Connected ideas

Another lens can bring the same problem into focus.

Often confused with

References

  1. Thinking, Fast and Slow — Kahneman, D. (2011)
  2. The influence of comparison on judgment: Anchoring and accessibility — Mussweiler, T., & Strack, F. (2000)

CONTINUE THE CONVERSATION

Source texts

  • Thinking, Fast and Slow (Daniel Kahneman)
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