While negotiating salary with your prospective employer, if you suggest an initial target salary of $55,000, your employer will consider $50,000 to $60,000 a reasonable range for negotiation, but if you mention $55,650, your employer is more likely to consider $55,000 to $56,000 the range of likely values for negotiation. In this example your employer is exhibiting the ________ bias.
A) availability
B) anchoring
C) hindsight
D) confirmation
E) impact

Question

Quizplus · Accepted Answer

This is an example of anchoring bias, where the initial suggestion of $55,000 sets a range for negotiation. When a more specific number is mentioned (i.e. $55,650), it anchors the negotiation range more tightly around that number.

While Negotiating Salary with Your Prospective Employer, If You Suggest