Anchoring Bias: Why the First Number You Hear Can Hijack Your Judgment
You see a jacket marked down from $300 to $149. You feel like you’re getting a great deal—even if the jacket’s worth $80.
That’s anchoring bias.
We cling to the first piece of information we hear—especially numbers—and use it as a mental “anchor” for all decisions that follow. It shapes how we negotiate, shop, estimate, and evaluate... often without realizing it.
Anchoring isn’t rational. It’s sticky.
What This Bias Is
Anchoring bias is a cognitive distortion where we rely too heavily on the first piece of information offered (the “anchor”) when making decisions, even if it’s arbitrary or irrelevant.
This anchor sets a psychological benchmark.
Everything after it gets compared to that first number, idea, or impression—even when logic says it shouldn’t.
Real-Life Examples of the Bias in Action
Retail Pricing: Seeing a “was $300, now $149” label makes the price feel like a steal—even if the original price was inflated.
Negotiation: The person who throws out the first salary or offer often dictates the final range, even if the starting figure is unreasonable.
Time Estimates: If someone says a meeting will last “10 minutes,” we’ll expect that—even if it consistently takes 30.
Real Estate: A home listed at $600K may seem “reasonable” compared to others priced higher—even if the value doesn’t match the market.
Fundraising: Donor forms that start with $1,000 nudge people to give more than if the form started at $50.
Why It Matters
Anchoring bias distorts your ability to think independently. It warps how you compare, evaluate, and decide.
You may spend too much
Set unrealistic expectations
Overestimate outcomes
Undervalue alternatives
It’s especially dangerous in high-stakes decisions involving finances, risk, or personal commitments.
The Psychology Behind It
Why does the first number dominate our thinking?
Cognitive Efficiency
Our brains want shortcuts. Anchors reduce mental load by offering a default.Availability Heuristic
The first piece of data is easiest to access—so it feels more valid.Contrast Effect
Subsequent information is judged in contrast to the anchor, not on its own merit.Primacy Effect
We tend to trust the first thing we hear more than what comes later, regardless of quality.
How to See Through It (Bias Interrupt Tools)
Challenge the first figure
Ask: Where did this number come from? Is it credible—or convenient?Generate your own reference point
Before hearing someone else’s offer or estimate, write down what you think is fair.Delay your decision
Give your brain time to let go of the anchor and re-evaluate objectively.Use multiple data points
Don’t compare just one option to the anchor. Look at a wider range of information.Practice mental subtraction
What if that anchor didn’t exist? What would this choice look like on its own?
Related Biases
Framing Effect: The way information is presented changes how we interpret it.
Decoy Effect: Irrelevant alternatives influence our preferences.
Primacy Bias: First impressions dominate memory and evaluation.
Final Reflection
Anchoring bias is subtle—but powerful.
It tricks us into thinking we’re being rational when we’re really being primed.
The goal isn’t to eliminate anchors. It’s to notice when they’re steering the wheel—so we can take back control of the decision.