In a decision-making problem, anchoring effects occur when
A) decision makers are tied too closely to previous decisions.
B) organizations refuse to consider new alternatives.
C) a seemingly trivial factor serves as a starting point for estimations.
D) a person in a position of authority exerts his or her opinion very forcefully.

Question

Quizplus · Accepted Answer

Anchoring effects occur when a seemingly trivial factor (the "anchor") serves as a starting point for estimations, leading decision makers to be biased towards options that are closer to the anchor. This can occur even when the anchor is arbitrary or irrelevant to the decision at hand.

In a Decision-Making Problem, Anchoring Effects Occur When