Understanding Anchoring and Its Effects

What is the primary effect of anchoring in decision-making?

• It speeds up the decision-making process.

• It eliminates bias in decision-making.

• It causes decisions to be based on the first piece of information.

• It makes decisions more accurate.

In the context of negotiations, how does an initial offer act as an anchor?

• It ensures both parties agree quickly.

• It sets a reference point that influences the final agreement.

• It makes the negotiation process longer.

• It guarantees a fair outcome for both parties.

What was the outcome of Tversky and Kahneman's experiment with the rigged wheel?

• Participants ignored the wheel's number.

• Participants refused to participate after seeing the wheel.

• Participants gave similar estimates regardless of the wheel's number.

• Participants' estimates were influenced by the number on the wheel.

How did Professor Morris's students estimate the price of German cars when anchored by $90,000?

• They estimated it to be between $45,000 and $50,000.

• They estimated it to be between $10,000 and $15,000.

• They estimated it to be between $20,000 and $25,000.

• They estimated it to be between $60,000 and $65,000.

What does Professor Morris conclude about intuition and decision-making?

• Intuition is not important in decision-making.

• Intuition is always logical and unbiased.

• Intuition drives more than 90% of our thinking and behavior.

• Intuition is rarely influenced by external factors.