• Anchor and Adjust is a cognitive heuristic where a person starts from an initial idea and adjusts their beliefs based on that starting point.

  • Anchoring and adjusting has been shown to give erroneous results when the original anchor deviates from the true value.
  • Awareness of the anchor, monetary incentives, careful consideration of a range of possible ideas, knowledge, experience, personality and mood can all change the effect of the anchor.
  • Anchor can be used to advantage in sales and price negotiations where setting up an initial anchor can sway subsequent negotiations in your favor.