What role does anchoring bias play in bargaining?
A)It establishes a price point based on previous negotiations the two parties have had together.
B)It is a benefit the opening bidder has in the bargaining process.
C)It establishes a price point based on previous negotiations the two parties have had over a similar negotiation,but not necessarily with each other.
D)None of the above.

Question

Quizplus · Accepted Answer

Anchoring bias is a cognitive bias that causes people to rely too heavily on the first piece of information they receive when making decisions. In the context of bargaining, this means that the opening bid can have a significant impact on the final outcome, even if it is not a fair or reasonable price.

What Role Does Anchoring Bias Play in Bargaining