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title: The Anchoring Effect
modified: 2026-06-10
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[The anchoring effect](https://sketchplanations.com/anchoring) is a cognitive bias where people rely too heavily on the first piece of information (the “anchor”) when [making decisions](decision-making.md).

Once an anchor is set, subsequent judgments are made by adjusting away from that anchor, and there is a bias toward interpreting other information around it.

# Examples

* In negotiations, the first price mentioned often sets the tone for the rest of the discussion, even if it is arbitrary.
* When a credit card statement suggests a minimum payment of $25, many people focus on that number and pay only the minimum—even, even if they could afford more.
* Retailers use “original price” tags to anchor perceptions of value, making discounts seem more significant.

# Related Concepts

* Adjustment Heuristic
* The Framing Effect

# References

* Kahneman, D., & Tversky, A. (1974). Judgment under Uncertainty: Heuristics and Biases. Science.