Asked by Raymond Shaquille on Jul 23, 2024
Verified
The "anchoring" phenomenon observed by behavioral economists refers to the fact that people's estimates of the value of things are affected by
A) recently considered information.
B) their childhood memories.
C) irrelevant data always.
D) relevant information solely.
Anchoring
A cognitive bias where an individual relies too heavily on an initial piece of information (the "anchor") to make subsequent judgments.
Behavioral Economists
Researchers and experts who study the psychological, social, cognitive, and emotional factors influencing economic decisions and behaviors of individuals and institutions.
Recently Considered Information
Pertains to the latest data or findings that have been taken into account in a particular context or analysis.
- Determine how anchoring affects judgments and choices.
Verified Answer
WM
wanda mitchellJul 25, 2024
Final Answer :
A
Explanation :
Anchoring refers to the cognitive bias where an individual's decisions or estimates are influenced by a particular reference point or initial piece of information (the "anchor"), which may not necessarily be relevant or recent. This means that people's judgments can be swayed by an initial piece of information they are given, even if it's not directly related to the decision at hand.
Learning Objectives
- Determine how anchoring affects judgments and choices.