Anchoring and Adjustment Bias-Being Influenced by an Initial Figure

Essay

Anchoring and adjustment bias-being influenced by an initial figure.It is sometimes seen in real estate sales.Before the crash in the real estate markets,many homeowners might have been inclined at first to list their houses at an extremely high (but perhaps randomly chosen)selling price.These sellers were then unwilling later to come down substantially to match offers that reflected what the marketplace thought the house was really worth.