In an experiment, students were asked to consider the last two digits of their social security number. Next, students were asked to submit bids for a product. There was a positive correlation between the size of the bid and the last two digits of a student's social security number. This experiment highlights the behavioral economic issue of:
A) vertical thought.
B) metering.
C) fleeting.
D) anchoring.

Question

Quizplus · Accepted Answer

The experiment demonstrates the concept of "anchoring," where individuals rely too heavily on an initial piece of information (in this case, the last two digits of their social security number) to make subsequent judgments or decisions, such as the size of their bid for a product.

In an Experiment, Students Were Asked to Consider the Last