Phillip and Meg are selling their home.They listed their house three months ago at an extremely high selling price,a price they randomly chose.They do not want to come down on their price to reflect what the marketplace shows their home is really worth.This is an example of ______.

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Anchoring and adjustment bias is the tendency to make decisions based on an initial figure.Managers will often give their employees a standard percentage raise in salary,even though the raise may be completely out of alignment with what other companies are paying for the same skills.This is an instance of the anchoring and adjustment bias,the tendency to make decisions based on an initial figure.

Phillip and Meg Are Selling Their Home