Anchoring Bias

Humans and their ability to have abstract thoughts, internal communication, and shape their views based on the world around them lead to biases. Everyone has biases no matter how much they insist they do not. From opinions about political issues, favorite foods or movies, to the way they enjoy their morning routines, everyone has shaped biases. One of the most prevalent biases that overcome the human mind is the anchoring bias.

The anchoring bias infiltrates our minds when we receive information. It causes us to “anchor” our thoughts and perspectives based on the first example or first piece of new information we receive. If we first see that a flight to a different country is $500, but then see a new flight that is $350, we will think the second flight is relatively cheap. Movie theaters are known to attack this bias. Movie theaters make most of their money from concession sales. Their profit margins for every soft drink or bag of popcorn sold are extremely high. They purposely price the small popcorn a dollar or two less than the large popcorn because they know that humans will fall trap to the anchoring bias. People look at the small popcorn compared to the quantity of the large and think it is a “steal” to pay the extra amount to buy the large. They feel it is worth their money because of the anchoring effect.

The examples given above are life examples of how the anchoring bias makes its way into our daily lives but the anchoring bias can also hinder us from a personal perspective. If we start a new habit, new hobby, or new pursuit, and initially have a bad experience, we are more likely to anchor onto this feeling. The anchoring bias can cause us to turn away from the continued pursuit of things we want to achieve because of the initial emotions we anchor ourselves to. If you try a new diet and do not see results immediately, you are inclined to think that the diet does not work. If you start piano lessons and after 2 weeks have not improved, you are inclined to think you cannot be a musician. Biases in these ways are detrimental to our personal improvements.

Instead, switch your perspective to acknowledge the anchoring bias that is in effect. By acknowledging and understanding the emotions you are anchored to, you can work to pull the anchor up. By continuing to learn, grow, and put effort into the pursuit, what once kept your ship aground will cease to exist. You will be able to drop the anchor at a different location in the future. As a human, you cannot run from the biases that form, you can explore them and understand them to grow from them. Anchor or not, you will keep sailing.