The Role of Anchoring Bias in Money

Anchoring bias is when the brain focuses on the first piece of information that it hears in finance. In a retail context, if you're at the store, there's a sale. Something is marked down from $60 to $30. Because you see the original price, that is your anchor. You say like, oh, $30 is a great price for this. One, in fact, it might still be expensive for that particular item.