On the power of anchoring (for items that are hard to value)

πŸ’Ž On the power of anchoring (for items that are hard to value)

Another experiment: students and professional real-estate agents were given a tour of a house and asked to estimate its value. Beforehand, they were informed about a (randomly generated) listed sales price. As might be expected, the anchor influenced the students: the higher this price, the higher they valued the property. And the professionals? Did they value the house objectively? No, they were similarly influenced by the random anchor amount. The more uncertain the value of something – such as real estate, company stock or art – the more susceptible even experts are to anchors.

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

HT: @rshotton

Facebook Comments

Product Geek?

Join over 5,000 product geeks and get one email every Monday containing the best excerpts I've read over the previous week.

See some of what you're missing...