Anchoring - Definition and Overview

For other meanings see anchor (disambiguation).

Anchoring is a term used in psychology to describe the common human tendency to rely too heavily, or "anchor," on one trait or piece of information when making decisions.

During normal decision making, individuals anchor, or overly rely, on specific information or a specific value and then adjust to that value to account for other elements of the circumstance. Usually once the anchor is set, there is a bias toward that value.

Take, for example, a man looking to buy a used car. He overly relies (anchors) on the odometer reading and the year of the car and mentally evaluates the value of that car. He does not consider how well the engine or the transmission is maintained.

See also: anchoring and adjustment.