When we take in information on a subject or topic, we do not weight all the information equally: the first information we take in makes a particularly strong impression. As so-called anchors, these first pieces of information influence how we evaluate further information and classify it in the information already stored in our memory. This phenomenon is described by two effects: the Anchoring Effect and the Primacy Effect.

The Primary Effect is based on information from our long-term memory and basically says nothing more than the well-known statement "first impressions count". Once we have formed an opinion about a person or thing, we often categorize subsequent insights and experiences in such a way that they confirm this impression – that is, we fit them into the image we have already formed.

It takes a relatively high cognitive effort to break away from an established image. The longer and more intensely this image or our idea of something has been engraved, the more difficult it becomes to break away from it, even if there seems to be a lot of information suggesting a re-evaluation of our opinion.

The Anchoring Effect, on the other hand, refers to information in our short-term memory. It states that even incidental bits of information that we have taken in immediately before making an estimate and that are still in our short-term memory unconsciously influence our estimate.

In a study by Tversky and Kahneman*1 participants were asked to spin a wheel of fortune. The wheel showed them a number between 0 and 100, after which the subjects were asked to estimate what percentage of the members of the United Nations were African countries. The results were astounding, because the anchors they had previously obtained by spinning the wheel of fortune significantly influenced the estimates. The mean value of all estimates was 45%. However, the mean value of the estimates of people who had previously spun a number of 10 or less on the wheel of fortune was only 25%.

How do these biases come about?

When the wheel of fortune turns and you get a random number, the memory is activated. This information is then stored in easily retrievable areas of the memory. This information in these areas is then unconsciously given preference when solving tasks, even those that have nothing to do with the original task.

The Primary Effect, which manifests itself in both the Confirmation Error and the Serial Position Effect, is primarily due to our brain's tendency to process information as efficiently as possible in order to facilitate decisions and to organize the perceived world more manageable.

Practical significance

Anchors can play a crucial role in negotiations. For example, the subjective assessment of a loss or a win often depends on the first offer, which significantly influences the further course of the negotiations. Sellers and online shops like to offer products at a high price at first, and then reduce them significantly, creating the impression that the price is now extremely low.

Even experts are not completely immune to the anchoring effect. Studies show that judges, experts and juries in the past have been substantially manipulated by it.

Impact on the User Experience

strong

Further information