The tendency to rely on initial information presented when making judgments is known as?

The tendency to rely on initial information presented when making judgments is known as?

• A. Base rate expectations
• B. Anchoring effects
• C. Role effects
• D. Expectation bias

Answer: (B)

The correct answer is anchored effects because this term describes the cognitive bias where individuals tend to give disproportionate weight to the first piece of information they encounter, often referred to as the "anchor." When making decisions or judgments, this initial information can significantly influence the outcome, even when subsequent data suggests otherwise. For example, in negotiation scenarios, if one party suggests a starting offer, it can shape the expectations of the other party, regardless of its fairness. This tendency can lead to distorted assessments and poor decision-making, as individuals may fail to adapt their judgments to new evidence effectively. Understanding anchoring effects is crucial in various fields, including psychology, finance, and behavioral economics, as it underscores how initial impressions can skew our reasoning processes.

The correct answer is anchored effects because this term describes the cognitive bias where individuals tend to give disproportionate weight to the first piece of information they encounter, often referred to as the "anchor." When making decisions or judgments, this initial information can significantly influence the outcome, even when subsequent data suggests otherwise.

For example, in negotiation scenarios, if one party suggests a starting offer, it can shape the expectations of the other party, regardless of its fairness. This tendency can lead to distorted assessments and poor decision-making, as individuals may fail to adapt their judgments to new evidence effectively.

Understanding anchoring effects is crucial in various fields, including psychology, finance, and behavioral economics, as it underscores how initial impressions can skew our reasoning processes.