United States Law and Legal Analysis
Anchoring is a cognitive bias that influences decision-making by relying heavily on the first piece of information encountered when making choices. This initial reference point, or anchor, affects subsequent judgments and can shape the negotiation process, leading parties to make decisions based on that anchor rather than objective criteria. Understanding anchoring is crucial as it highlights how negotiation dynamics can be swayed by the framing of information and the strategic presentation of offers.
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