Anchoring

The first piece of information encountered on a topic disproportionately influences subsequent judgments, even when the anchor is arbitrary or irrelevant. If asked whether Gandhi lived past 140 years, people subsequently estimate his age at death higher than if asked whether he lived past 9 years. In negotiation, the first number named anchors the entire discussion. Anchoring affects pricing perception, salary negotiation, damage estimates, and virtually all numerical judgments.

When to use it

When entering any negotiation. When pricing products. When evaluating proposals (what was the anchor?). When making numerical estimates after exposure to any reference number.

How it can help

Critical for negotiation strategy (name the first number), pricing (anchor high), and decision hygiene (recognize when you've been anchored). Understanding anchoring transforms negotiations and helps resist manipulation in purchasing, hiring, and deal-making.