Uploaded March 2015 | Updated September 2026, 2 weeks ago

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Anchoring is a fascinating phenomenon. The idea is that the presence of a figure in our mind exerts an influence on us – on our judgments / estimations / evaluations, even if we know that the former (the figure) has nothing to do with the latter. Professor Dan Ariely shows how this works by means of a fascinating study.
While we might perhaps be reluctant to use this mechanism to manipulate others, we need to be aware of its existence in order to resist other people’s attempts to manipulate us! For instance, when the local car dealer makes you an initial offer of $ 1000 for your car, when you both know full well it is worth at least four times as much, chances are s/he is trying to rip you off as the figure still functions as an anchor.
[NB: If you are involved in negotiations over money (cars – real estate – rent – a business deal etc.) it is important that you get in your offer FIRST. Then it is your sum which acts as the anchor for both parties].

[NB: I do not own the copyright to this video clip. I have uploaded it here for educational purposes].