How Anchoring Bias Shapes Our Decisions: Understanding Cognitive Biases and the Biased Brain

The Biased Brain Podcast with Owen Hawthorne

Explore the intriguing world of cognitive biases and human cognition in this engaging podcast. Discover how bias in decision making shapes our perceptions and influences our choices. Join us as we delve into the science behind critical thinking and biases, providing practical insights to enhance your understanding and control over your thought processes. Whether you're a psychology student or curious observer, this podcast offers valuable tools to help you unveil the hidden biases in your mind.

How Anchoring Bias Sneaks Into Our Decisions Without Us Even Noticing

You know that feeling when you walk into a store looking for a TV and the first price you see somehow sets the stage for every other price you consider? Like, if the first TV is $1,500, suddenly $1,200 feels like a steal—even if it's still more than you wanted to spend? That’s anchoring bias at work, and it’s just one example of how our biased brain can quietly influence the way we make decisions.

Anchoring bias is one of those fascinating quirks in human cognition where the initial piece of information we come across—like that first price—becomes an “anchor.” It sticks in our minds, pulling all subsequent judgments closer to it, even when later information might suggest a different conclusion.

Think about it like this: imagine you’re trying to negotiate a salary. The first number tossed out, whether it’s yours or theirs, significantly shapes the negotiation. Even if you believe your skills are worth more, the initial figure subtly limits what you think is reasonable. It’s not just salary discussions—anchoring impacts everything from shopping, to investments, to even how we assess risks.

Why does this happen? Well, our brains are wired to conserve energy—mental energy, specifically. Instead of analyzing every bit of data fully, the brain uses shortcuts and cues to make quick judgments. This is part of a broader class of errors called cognitive biases, which are kind of like speed bumps on the highway of rational thought.

Understanding cognitive biases, especially anchoring bias, is crucial because it shines a light on why we sometimes make irrational choices or get stuck thinking in a narrow range of options. It’s not that we’re stupid—it’s just how human cognition evolved to handle information overload.

Now, how do you spot anchoring bias and prevent it from sabotaging your decisions? Here are some simple strategies that help promote more critical thinking and biases awareness:

• Pause before committing: When faced with an initial number or opinion, give yourself a moment to evaluate if that anchor is fair or if it’s just arbitrary.
• Seek multiple perspectives: Don’t rely on the first piece of information alone. Look for additional data points, alternative viewpoints, or historical averages to get a better sense of what’s reasonable.
• Ask “what if”: Challenge the anchor by asking yourself how the decision would change if you ignored the first number altogether.
• Be aware of framing: Often, the way a problem is framed sets an anchor. Try to reframe questions or scenarios in your own words to escape initial biases.

For example, studies have shown that when participants see a high number at the start, their estimates of unrelated quantities—like the number of countries in Africa or the price of a bottle of wine—are also pulled toward that initial high number. That’s the anchoring effect spilling over beyond its obvious context. Our brains don’t compartmentalize as neatly as we assume.

If you’re curious to explore more about how your mind can trick you through various cognitive biases, I highly recommend the book, The Biased Brain by Bo Bennett, PhD. It’s a fantastic resource to understand human cognition better, learn about bias in decision making, and get practical advice on overcoming these mental pitfalls. Explore the book and unravel the secrets of your mind today—you won’t look at your decisions the same way again.

In the end, anchoring bias is just one piece of the puzzle. Our brains are incredible but imperfect machines shaped by evolution and daily experiences. By recognizing these quirks, we give ourselves a chance to make smarter choices and develop stronger critical thinking skills.

So next time you’re shopping, negotiating, or making any decision, remember the power of that first number you see or hear. Don't let an invisible anchor drag your judgment down. Instead, question it, challenge it, and keep your mind open to a broader perspective.

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