Download pdf
Anchoring Effect and Its Applications
- 1 New channel
* Author to whom correspondence should be addressed.
Abstract
Anchoring effects are commonly present in the economic field, and their existence can bring many problems. The purpose of this article is to study the anchoring effect between individuals, markets, and investments, as well as the impact of the anchoring effect and which factors may affect it based on existing literature and relevant experimental results. Each aspect was studied through some experiments, and through these experiments, the anchoring effect had a significant impact on all three aspects. The result shows that for individuals, their estimates tend to be anchored; for market brands, the image of co-branded brands is influenced by high-visibility brands (anchors); and for investors, through research, it has been found that anchoring effects exist in individuals, markets, and investments, and there are different factors that can affect anchoring effects. For example, if investors have more knowledge reserves, the anchoring effect on them will weaken.
Keywords
anchoring effect, individual, market, investment
[1]. Baddeley, A. D. A 3 min reasoning test based on grammatical transformation. Psychonomic science, 10(10), 341-342. (1968).
[2]. Ariely, D., Loewenstein, G., & Prelec, D. “Coherent arbitrariness”: Stable demand curves without stable preferences. The Quarterly journal of economics, 118(1), 73-106. (2003).
[3]. Furnham, A., Boo, H. C., & McClelland, A. Individual differences and the susceptibility to the influence of anchoring cues. Journal of Individual Differences. (2012).
[4]. Teovanović, P. (2019). Individual differences in anchoring effect: Evidence for the role of insufficient adjustment. Europe's Journal of Psychology, 15(1), 8. (2019).
[5]. Simonson, I., & Drolet, A. Anchoring effects on consumers’ willingness-to-pay and willingness-to-accept. Journal of consumer research, 31(3), 681-690. (2004).
[6]. Esch, F. R., Schmitt, B. H., Redler, J., & Langner, T. The brand anchoring effect: A judgment bias resulting from brand awareness and temporary accessibility. Psychology & Marketing, 26(4), 383-395. (2009).
[7]. Zong, Y., & Guo, X. An experimental study on anchoring effect of consumers’ price judgment based on consumers’ experiencing scenes. Frontiers in Psychology, 13, 794135. (2022).
[8]. Welsh, M. B., Delfabbro, P. H., Burns, N. R., & Begg, S. H. Individual differences in anchoring: Traits and experience. Learning and Individual Differences, 29, 131-140. (2014).
Cite this article
Ye,G. (2023). Anchoring Effect and Its Applications. Advances in Economics, Management and Political Sciences,44,47-51.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).