Three Applications of the Anchoring Effect
- 1 Shenzhen College of International Education
* Author to whom correspondence should be addressed.
Abstract
Many heuristics in behavioural economics play important roles in decision-making. The anchoring effect is one of these heuristics which influence people’s decisions in different fields. Through qualitative analysis and case analysis, this paper aims to introduce the applications of the anchoring effect in various situations. And according to the influence of anchoring effect on decision making in online auctions, court, and Marketing, it analyses how the anchoring effect affects people’s decisions and also how to avoid the deviation caused by anchoring effect. The analysis proves that anchoring affects people’s decision-making in different situations to a certain extent, and makes biased decisions without people realizing it. he analysis also shows that biased decisions can be avoided in different ways. There are different ways in which people can gain more perspectives and information in their lives, while thinking about how to create excellent self-generated anchors to help escape the effects of anchoring.
Keywords
decision-making, anchoring effect, heuristics
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Cite this article
Dong,J. (2023). Three Applications of the Anchoring Effect. Lecture Notes in Education Psychology and Public Media,19,1-6.
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