вЂњPowerful anchoring effects are found in decisions that people make about money, such as when they choose how much to contribute for a cause.вЂќ Quoted from the book, Thinking Fast and Slow.

This is the reason we dress up appropriately for an interview, which makes the first impression. The priming effect of anchoring also applies to first impression. Picking up a product from the shelf on the basis of packaging is just one of these decisions. This priming effect applies in our lives on a daily basis. The packaging suggests that one in blue is more likely to be premium than the other one, even if the facecream is exactly the same inside the box. The packaging of the box is the anchor here that gives an initial piece of information to people. Unmistakably, consumers vote for the blue box with a higher price than the brown box. Both of these boxes are shown to consumers and they are asked to estimate the price of face cream inside it. Here are six features and impact of the anchoring bias in our decision making.ДЄ textured premium paper box in navy blue with lettering in gold and a brown cardboard box with black lettering are identical in shape and size. Viewing the screen for an extra few minutes is not a high stake decision but there are other decisions that have an anchoring effect and we need to be mindful about it. In todayвЂ™s Habits for Thinking, I am bringing your attention to how anchoring impacts our decision making. Obviously, this behaviour also covers fatherвЂ™s indulgence for the child.ДЄnchoring is a concept explained by Amos Tversky and Daniel Kahneman in the book Thinking, Fast and Slow. Instead of negotiating from zero to fifteen minutes, he actually negotiates from sixty minutes and brings it down to fifteen minutes. Like in this case, the child says one hour and fatherвЂ™s thoughts get anchored around one hour. This number anchors fatherвЂ™s mind and his quick reactions.ДЄnchoring bias is the impact on human behaviour after receiving the initial piece of information. Ideally it should have been zero extra minutes but the child ends up winning most of the time, because the negotiation always starts with a large number. Which means, ideally there should not have been any negotiation. The negotiation begins only when the agreed time is over. This is a regular small stake negotiation between the father and the child at home for extra television time.

The anchoring index