Anchoring bias happens when individuals become too focused on the first piece of information that they receive (the “anchor”) when making decisions, even if the information is irrelevant or outdated.

In the previous article, we explored mental accounting bias – the tendency to not treat all money the same. We now turn to ...

For the average investor, the headlines don't look good right now. Stock markets are in turmoil, and the threat of a recession looms. And during this sort of economic volatility, our natural instincts ...

Let’s have some fun and start with a little quiz. Take out a pen and paper and write down the answers to the following two questions: How old are you? How many people worldwide died in major plane ...

"Anchoring bias" is a cognitive bias whereby humans unconsciously rely on an initial number or piece of information when making future decisions. It's a type of mental shortcut that may have negative ...

Behavioral biases, which are psychological tendencies, can influence an investor's decisions more than they realize. Common biases include herd mentality, overconfidence, confirmation bias, loss ...

Forbes contributors publish independent expert analyses and insights. Bryce Hoffman writes about leadership, strategy, and decision making. This article is more than 2 years old. The anchoring effect ...