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Spot it

Anchoring

Also called first-number effect

The first number you see sets what 'cheap' or 'a lot' feels like.

Your brain judges numbers by comparison, not in a vacuum. Whatever figure arrives first becomes the reference point, and you adjust from it, usually not far enough. That's why a crossed-out price, an opening salary offer or a big headline figure shapes what follows, even when you know it's arbitrary. In one classic study, a rigged wheel landing on 10 or 65 shifted people's guesses about African countries in the UN (median 25% vs 45%). The anchor doesn't need to be relevant to work.

What the research says

  • Well supported

  • Mixed evidence

    • Ariely, Loewenstein & Prelec (2003). Quarterly Journal of Economics 118(1), 73–106Mixed evidence. A large replication found smaller anchoring effects on willingness to pay (Maniadis, Tufano & List, 2014, American Economic Review 104(1), 277–290).

Where you'll see it

  • Sales: 'was £120, now £59'
  • Salary and pay-rise talks
  • House asking prices
  • Charity 'suggested donation' boxes
  • Headline cost figures, the biggest number first

Your defence

Decide your own number before you look at theirs.

Practise this