Consumers are prone to cognitive biases in decision-making due to the impact of time restrictions, specific environment, and project inducements in the process of experience. Compared with traditional marketing scenarios, it is easy to bias decision makers due to the existence of anchor information. Research on anchoring effect focuses on psychology, economics, law, and medicine instead of the price judgment of consumers. This article uses experimental research to explore the existence and influencing factors of anchoring effect when (...) consumers judge and estimate the price of a product in experiencing scenes. In this article, the hypothesis is that anchoring effect exists and is influenced by factors including anchor value, gender, emotion, personality, knowledge and skill, time pressure, early warning indication, cognitive need, and self-confidence level under external and internal anchor conditions. Subjects judged and estimated different prices after product experience through the design of different decision-making scenarios of external and internal anchors, and finally, the anchoring index and the mean skew index were used to calculate the anchoring effect. The experimental results showed that consumers were affected by anchoring effect when making price judgment in experiencing scenes. In addition to the factors of time pressure and self-confidence level, gender, personality, knowledge, and skill all had a significant influence on anchoring effect under external anchor conditions. Finally, this article provides advice for enterprise marketing planners including setting reasonable anchor values, highlighting the design of experiencing scenes, and developing differentiation strategies. (shrink)

Selective accessibility mechanisms indicate that anchoring effects are results of selective retrieval of working memory. Neuroimaging studies have revealed that the right dorsolateral prefrontal cortex (DLPFC) is closely related to memory retrieval and performance. However, no research has investigated the effect of changing the cortical excitability in right DLPFC on anchoring effects. Transcranial direct current stimulation (tDCS) can modulate the excitability of the human cerebral cortex, while anodal and cathodal tDCS are postulated to increase or decrease cortical activity, respectively. (...) In this study, we used tDCS to investigate whether effects of increased or decreased right DLPFC excitability influence anchoring effects in willingness to pay (WTP) experiments. Ninety participants were first randomly assigned to receive either anodal, cathodal, or sham stimulation of 15 minutes, then they performed a valuation task regarding WTP. The results showed that anchoring effects were negatively related to activities of right DLPFC: the anodal stimulation diminished anchoring effects while the cathodal stimulation increased anchoring effects. These outcomes provide one of the first instances of neural evidence for the role of the right DLPFC in anchoring effects and support psychological explanations of the selective accessibility mechanisms and cognitive sets. (shrink)

We compare the predictions of two important proposals made by De Neys to findings in the anchoring effect literature. Evidence for an anchoring-and-adjustment heuristic supports his proposal that system 1 and system 2 are non-exclusive. The relationship between psychophysical noise and anchoring effects, however, challenges his proposal that epistemic uncertainty determines the involvement of system 2 corrective processes in judgment.

The anchoring heuristic refers to phenomena when an arbitrary number affects subsequent numerical estimations. Oppenheimer, LeBoeuf and Brewer showed that it is not necessary for the anchor to be a numerical value, yet current models describing the anchoring heuristic do not fully account for the mechanism of non-numerical anchoring. However, this effect shows similarity to the basic anchoring effect - obtained without the comparative question and based on the availability of the given number in working memory. In (...) this study, we attempt to verify whether those two effect share the same psychological mechanism. In Experiment 1, we show that non-numerical anchoring based on magnitude priming cannot be obtained when the lines are just observed. The examined mechanism proves to be dependent on the act of drawing, displaying limitations similar to the basic anchoring effect, previously pointed out by Brewer and Chapman. By using the same numerical anchors in different size formats, in Experiment 2 we showed that anchoring based on magnitude priming occurs even when the numerical values do not affect the estimations. The results are discussed in the light of a possible mechanism that underlies the investigated effect. (shrink)

The anchoring effect is a form of cognitive bias in which exposure to some piece of information affects its subsequent numerical estimation. Previous studies have discussed which stimuli, such as numbers or semantic priming stimuli, are most likely to induce anchoring effects. However, it has not been determined whether anchoring effects will occur when a number is presented alone or when the semantic priming stimuli have an equivalent dimension between a target and the stimuli without a number. We conducted (...) five experimental studies using stimuli to induce anchoring effects. We found that anchoring effects did not occur when a number was presented alone or when phrases to induce semantic priming were used without presenting a number. These results indicate that both numerical and semantic priming stimuli must be presented for anchoring effects to occur. Our findings represent a substantial contribution to the literature on anchoring effects by offering insights into how these effects are generated. (shrink)

This anthology assembles original contributions by leadinganalytical philosophers to a broad range of topics on whichSuppes set out ideas which still point the way ahead. All the papersincluded were originally given at the 1st International LauenerSymposium on Analytical Philosophy, which accompanied the Presentationof the first Lauener Prize to Patrick Suppes. His detailedcommentaries on each of the revised articles as well as the addedinterview elicit a spirit of constructive academic conversation.The book joins together contributions by Patrick Suppes, DagfinnFllesdal, Nancy Cartwright, Wilhelm (...) K. Essler, Steven French,Stephan Hartmann, and Michael Frauchiger. The collection as awhole puts a different and stimulating perspective on a varietyof issues in the methodology of science and philosophy. (shrink)

An Internet-based competitive marketing game, FIFA 20, served to investigate the effectiveness of two opposite strategies in soccer-player auctions under semi-naturalistic conditions. Granting the validity of both causal principles, the anchoring principle giving an advantage to starting with a high price (Ritov, 1996) and the traffic principle underlying the starting-low advantage (Ku, Galinsky, & Murnighan, 2006), we nevertheless expected starting low strategies to produce higher end-prices under FIFA 20 conditions. Two experiments, each using multiple copies of two players from the (...) lowest price segment (Kramaric, Pizzi) and from an elevated price segment (Laporte, Martial), corroborated these expectations. A starting-low advantage was evident in two utility aspects, enhanced average (profit) and reduced variance (uncertainty aversion) of end prices obtained for player copies offered at lower starting prices. However, when the causal impact of the manipulated starting value was overshadowed by extraneous media influences, these findings were reduced or disappeared but never reversed. (shrink)

Deliberation is a standard procedure to make decisions in not too large groups. It has the advantage that the group members can learn from each other and that, at the end, often a consensus emerges that everybody endorses. But a deliberation procedure also has a number of disadvantages. E.g., what consensus is reached usually depends on the order in which the different group members speak. More specifically, the group member who speaks first often has an unproportionally high impact on the (...) final decision: She anchors the deliberation process. While the anchoring effect undoubtably appears in real deliberating groups, we ask whether it also appears in groups whose members are truth-seeking and rational in the sense that they take the information provided by their fellow group members properly into account by updating their beliefs according to plausible rules. To answer this question and to make some progress towards explaining the anchoring effect, a formal model is constructed and analyzed. Using this model, we study the anchoring effect in homogenous groups, for which we provide analytical results, and in inhomogeneous groups, for which we provide simulation results. (shrink)

We study the anchoring effect in a computational model of group deliberation on preference rankings. Anchoring is a form of path-dependence through which the opinions of those who speak early have a stronger influence on the outcome of deliberation than the opinions of those who speak later. We show that anchoring can occur even among fully rational agents. We then compare the respective effects of anchoring and three other determinants of the deliberative outcome: the relative weight or social influence (...) of the speakers, the popularity of a given speaker's opinion, and the homogeneity of the group. We find that, on average, anchoring has the strongest effect among these. We finally show that anchoring is often correlated with increases in proximity to single-plateauedness. We conclude that anchoring can constitute a structural bias that might hinder some of the otherwise positive effects of group deliberation. (shrink)

“Anchoring” is a tactic used to manipulate negotiation outcomes. It exploits the fact that people base their estimates of unknown quantities on initial values. If they are given these initial values, their estimations are influened by them. We will address whether there is a rational justification for people to be manipulated by anchoring. We will also look at how to recognize in a negotiation situation whether the anchor effect is being used against you, how to use the (...) class='Hi'>anchor effect to your benefit, or at least how to defuse it if it is being used against you. (shrink)

Although ethics research shows that prospective penalties for tax fraud can increase taxpayers’ compliance with tax laws, we do not have a clear understanding of how perceptions of penalty severity impact tax compliance. To address this gap, I first conduct a survey to establish what propriety of penalty severity encourages compliance. I then examine experimentally whether taxpayers’ compliance is jointly influenced by penalty severity and social norms. I expect social norms to moderate the impact of penalty severity because social norms (...) provide a contextual cue about the scope and relevance of an ethical issue. Specifically, I expect that when taxpayers anchor (do not anchor) on information about social norms, the positive impact of penalty severity on tax compliance is suppressed (not suppressed). My results are as predicted. I conclude that governments can increase compliance with tax laws by imposing appropriately severe tax fraud penalties and carefully considering the release of information related to compliance norms. (shrink)

When making inferences about similar others, people anchor and adjust away from themselves. However, research on relational self theory suggests the possibility of using knowledge about others as an anchor when they are more similar to a target. We investigated whether social inferences are made on the basis of significant other knowledge through an anchoring and adjustment process, and whether anchoring on a significant other is more effortful than anchoring on the self. Participants answered questions about their likes (...) and habits, as well as the likes and habits of a significant other, a target similar to their significant other, and a yoked control. We found that prediction differences between the significant other and similar target led to longer response times, and we found the opposite effect for self and target differences, suggesting anchoring and adjustment from the significant other rather than the self. These effects were moderated by the source-relative salience of the dimension being evaluated. The evidence was mixed with respect to the question of whether anchoring on a significant other is more effortful than anchoring on the self. (shrink)

Through a discussion of three pedagogical instances--based on classroom discourse, student writing, and program development--the authors examine education as an academic field, arguing that its disciplinary practices and perspectives invite interdisciplinarity and extra-disciplinarity to bridge from the academy to issues, problems, and strengths beyond it. Interdisciplinarity--understood as temporary “groundlessness”--emerges as a means to apprehend and respond to problems that in the context of past frustrations and failures may seem insurmountable; the willingness to not-know inspires new paradigms, experiences, and relationships. Extra-disciplinarity (...) highlights the many chords running between academe and the rest of the world. Using this framework, we discuss the featured pedagogical instances as small-scale models for changing the power structures that have historically silenced some perspectives and knowledges, thus opening these structures to new inputs and connections. We conclude that while this work has no guarantees and is never complete, we must keep trying to connect beyond our academic disciplines and ourselves, both to learn and to more effectively impact the world. (shrink)

Institutions of higher learning have continued to record high cases of gender-based violence (GBV) despite all efforts put in place to fight the vice. The most common forms of GBV are physical, sexual assault and psychological violence. Women and girls make up the majority of the GBV victims worldwide. For many years, institutions of higher learning have proved to be fertile environments for GBV cases. The purpose of this study was to investigate effects of GBV on the well-being of students (...) in institutions of higher learning in Zambia. The study employed a mixed research methodology, and it was anchored on pragmatic philosophical paradigm. An explorative study design was used. Data were collected using both probabilistic and non-probabilistic methods, and the sample size was 150 respondents. The main findings of the study showed both academic and non-academic effects of GBV on students and included stigma, low academic performance, mental and psychological trauma as well as high drop outs. Contribution: The study highlighted effects of GBV as being both academic and non-academic in nature. Once students and staff ignore the word of God spoken in scriptures and begin to follow their egos, the consequences are devastating. For scriptures says love one another, forgive each other and bear each other’s burdens in love. Do unto others as you would want then to do unto you. For where there is love, no one will desire to hurt others. Where there is no love of God or forgiveness, there is pain and damage that can spoil someone’s future, especially that of the youth. (shrink)

People made forecasts from graphically presented time series. Series were sinusoids overlaid by a zero or positive linear trend and a zero, low, moderate, or high level of noise. Forecasting performance was affected by both these variables. However, it did not correlate with ability to identify the trend and correlated significantly with ability to detect the sinusoidal pattern only when series were noise-free. A second experiment showed that the effect of data noise was not influenced by the number of (...) forecasts that people made from a series. These findings are consistent with the view that data noise does not affect the way that forecasts are made but that it impairs them for two reasons. First, it renders the anchor-and-adjust heuristics underlying them less effective. Second, it causes people to add more noise to their judgements in their attempts to make them representative of the data. (shrink)

Coronavirus disease is having an unprecedented and unpredictable impact on the world's economy. The pandemic has driven the world toward adapting to the current circumstances regardless of the business, sector, or industry. The coronavirus epidemic has affected the global economy and service sector. The purpose of the current study is to assess the effect of COVID-19 on service sector growth and sustainability. Global sectors and industries are trying to anchor themselves amidst the pandemic. The study focuses on the (...) sectors that are badly hit by the outbreak and discussed the strategies and responses different countries are taking to sustain their economies. This study concludes that the vital role of Information Technology and digitization supports the economies in their fight against the pandemic and helps them sustain themselves amid crises. This study also contributes to the body of literature by suggesting IT-based solutions for various industries to elevate effective responsiveness and avoid significant losses. (shrink)

Economic small group research points to groups as more rational decision-makers in numerous economic situations. However, no attempts have been made to investigate whether groups are affected similarly by behavioral biases that are pervasive for individuals. If groups were also able to more effectively avoid these biases, the relevance of biases in actual economic contexts dominated by group decision-making might be questioned. We consider the case of anchoring as a prime example of a well-established, robust bias. Individual and group biasedness (...) in three economically relevant domains are compared: factual knowledge, probability estimates and price valuations. In contrast to previous anchoring studies, we find groups to successfully reduce, albeit not eliminate, anchoring in the factual knowledge domain. For the other two domains, groups and individuals are equally biased by external anchors. Group cooperation thus reduces biases for predominantly intellective tasks only, while no such reduction is achieved when judgmental aspects are involved. (shrink)

Our brains make up a series of signs and are engaged in making or manifesting or reacting to a series of signs: through this semiotic activity they are at the same time engaged in “being minds” and so in thinking intelligently. An important effect of this semiotic activity of brains is a continuous process of “externalization of the mind” that exhibits a new cognitive perspective on the mechanisms underling the semiotic emergence of abductive processes of meaning formation. To illustrate (...) this process I will take advantage of the analysis of some aspects of the cognitive interplay between internal and external representations. I consider this interplay critical in analyzing the relation between meaningful semiotic internal resources and devices and their dynamical interactions with the externalized semiotic materiality suitably stocked in the environment. Hence, minds are material, “extended” and artificial in themselves. A considerable part of human abductive thinking is occurring through an activity consisting in a kind of reification in the external environment and a subsequent re-projection and reinterpretation through new configurations of neural networks and chemical processes. I also illustrate how this activity takes advantage of hybrid representations and how it can nicely account for various processes of creative and selective abduction, bringing up the question of how multimodal aspects involving a full range of sensory modalities are important in hypothetical reasoning. (shrink)

We present a longitudinal computational study on the connection between emotional and amodal word representations from a developmental perspective. In this study, children's and adult word representations were generated using the latent semantic analysis (LSA) vector space model and Word Maturity methodology. Some children's word representations were used to set a mapping function between amodal and emotional word representations with a neural network model using ratings from 9‐year‐old children. The neural network was trained and validated in the child semantic space. (...) Then, the resulting neural network was tested with adult word representations using ratings from an adult data set. Samples of 1210 and 5315 words were used in the child and the adult semantic spaces, respectively. Results suggested that the emotional valence of words can be predicted from amodal vector representations even at the child stage, and accurate emotional propagation was found in the adult word vector representations. In this way, different propagative processes were observed in the adult semantic space. These findings highlight a potential mechanism for early verbal emotional anchoring. Moreover, different multiple linear regression and mixed‐effect models revealed moderation effects for the performance of the longitudinal computational model. First, words with early maturation and subsequent semantic definition promoted emotional propagation. Second, an interaction effect between age of acquisition and abstractness was found to explain model performance. The theoretical and methodological implications are discussed. (shrink)

The purpose of this article is to examine the relationship of leadership effectiveness and psychological well-being with the work outcomes of intention to quit, job involvement and organization-based self-esteem (OBSE), and whether workplace spirituality plays a role in mediating the associations of leadership effectiveness and psychological well-being with work outcomes. The study is cross-sectional and non-experimental. Data were obtained from 630 information technology (IT) employees from South India, adopting ‘power calculations’. The analysis was performed using SPSS version 20 for Windows (...) and LISREL version 8.72. Results reveal that leadership effectiveness and psychological well-being have a significant positive association with workplace spirituality, and this, in turn, has an impact on the work outcomes of intention to quit, job involvement and OBSE. Workplace spirituality can limit any negative associations of leadership effectiveness and psychological well-being with work outcomes. This research adds to the existing body of knowledge in the spirituality literature by drawing attention to the positive aspects of the interplay between spirituality, leadership transformation and well-being at work. The article concludes that building core values anchoring spirituality would lead to greater connectedness and healthier employee outcomes. (shrink)

This research study focuses on the problem of populistic propaganda online. In particular, this research study provides three case studies gathered in a Facebook Group of the Italian populistic movement Movimento 5 Stelle. On the one hand, the three case studies provide three powerful counterexamples to the thesis that online media are purposeful aggregator of people. In fact, this research study finds that online media are the perfect environment for populism to thrive. For online media seem to foster the aggregation (...) of people into groups whose main common denominator is the total refusal of anything that opposes the groups’ views. On this basis, this paper provides evidence that online media may impoverish democratic confrontation. On the other hand, this paper finds that the one of the causes of the rapid rise of populistic movements in Western countries might also be related to the problem of cognitive biases. Indeed, the case studies presented in the paper posit the existence of something that is addressed as the trigger effect, i.e. agents’ tendency to react impulsively to any kind of content that fits agent’s views about current events. Specifically, this research study finds that the activation of the trigger effect might be a direct consequence of the activation of the narrow framing bias and of the anchoring heuristic in presence of fake news. (shrink)

The aim of this study was to initiate the exploration of debiasing methods applicable in real-life settings for achieving lasting improvement in decision making competence regarding multiple decision biases. Here, we tested the potentials of the analogical encoding method for decision debiasing. The advantage of this method is that it can foster the transfer from learning abstract principles to improving behavioral performance. For the purpose of the study, we devised an analogical debiasing technique for 10 biases (covariation detection, insensitivity to (...) sample size, base rate neglect, regression to the mean, outcome bias, sunk cost fallacy, framing effect, anchoring bias, overconfidence bias, planning fallacy) and assessed the susceptibility of the participants ( N = 154) to these biases before and 4 weeks after the training. We also compared the effect of the analogical training to the effect of ‘awareness training’ and a ‘no-training’ control group. Results suggested improved performance of the analogical training group only on tasks where the violations of statistical principles are measured. The interpretation of these findings require further investigation, yet it is possible that analogical training may be the most effective in the case of learning abstract concepts, such as statistical principles, which are otherwise difficult to master. The study encourages a systematic research of debiasing trainings and the development of intervention assessment methods to measure the endurance of behavior change in decision debiasing. (shrink)

Social enterprises are seen as innovative towards solving societal problems, but little research exists on possible negative aspects, the so‐called dark sides. In this study, the emphasis is on dark sides of social entrepreneurship, how they are managed, and how systems thinking can contribute towards managing these effects. Dark sides of social entrepreneurship can take many forms, like unethical or insincere motives and unintended outcomes like the negative impact on the well‐being of founders and employees, but they are also a (...) call for a critical reflection on the role of the government in society and the economic system social enterprises have to operate in. This paper aims to contribute to the dark side theory of social entrepreneurship by linking system archetypes to themes of dark side thereby stressing how management strategies act as balancing feedback loops to mitigate or prevent dark sides. A qualitative research was conducted by interviewing 21 respondents who play an important role in the world of social entrepreneurship in Belgium. The results show that dark sides of social enterprises manifest itself mostly in the form of trade‐offs and financial, business, and management related issues. Taking over the habits of profit‐oriented companies emerged as a new dark side element. Management strategies include anchoring goals, transparency, obtaining external views, changing the system, and above all reflection. The latter is an important first step to become aware of these issues to be able to change the negative dynamism of these dark sides. (shrink)

This Element explores relationships between collocations, writing quality, and learner and contextual variables in a first-year composition (FYC) programme. Comprising three studies, this Element is anchored in understanding phraseological complexity and its sub-constructs of sophistication and diversity. First, the authors look at sophistication through association measures. They tap into how these measures may tell us different types of information about collocation via a cluster analysis. Selected measures from this clustering are used in a cumulative links model to establish relationships between (...) these measures, measures of diversity and task, the language background of the writer and individual writer variation, and writing quality scores. A third qualitative study of the statistically significant predictors helps understand how writers use collocations and why they might be favoured or downgraded by raters. This Element concludes by considering the implications of this modelling for assessment. (shrink)

Previous research described different cognitive processes on how individuals process distributional information. Based on these processes, the current research uncovered a novel phenomenon in distribution perception: the Endpoint Leverage Effect. Subjective endpoints influence distribution estimations not only locally around the endpoint but also influence estimations across the whole value range of the distribution. The influence is largest close to the respective endpoint and decreases in size toward the opposite end of the value range. Three experiments investigate this phenomenon: Experiment (...) 1 provides correlational evidence for the Endpoint Leverage Effect after presenting participants with a numerical distribution. Experiment 2 demonstrates the Endpoint Leverage Effect by manipulating the subjective endpoints of a numerical distribution directly. Experiment 3 generalizes the phenomenon by investigating a general population sample and estimations regarding a real‐world income distribution. In addition, quantitative model analysis examines the cognitive processes underlying the effect. Overall, the novel Endpoint Leverage Effect is found in all three experiments, inspiring further research in a wide area of contexts. (shrink)

Behavioral Finance is an evolving field that studies how psychological factors affect decision making under uncertainty. This study seeks to find the influence of certain identified behavioral financial biases on the decision-making process of investors in developing countries. This research examines the moderating effect of Information asymmetry on the two most important and commonly used cognitive biases, namely Anchoring bias and Optimism bias and decision making and investigates whether Risk perception mediates the relationship between them or not. Quantitative research (...) has been conducted using a structured questionnaire for data collection. After completing the pilot study, a questionnaire was designed and sent to investors via online channels. Data has been collected from 317 real estate investors. Mediation analysis has been performed using model 4 and moderation analysis by applying model 15 of Process Macros for the interaction effect. The study investigated that both cognitive biases have a significant positive effect on investors’ decisions and Risk perception also significantly mediates the relationship between them. Consistency with other studies suggests that Information asymmetry has a significant moderating effect. The proposed conceptual model provides insight into how investors’ decisions are influenced by behavioral biases in the real estate sector and enhances the understanding of cognitive biases in the real estate sector. This study is recommended for real estate investors and policymakers of emerging and developed countries. The current study is the first of its kind, focusing on cognitive biases on investment decisions with mediating role of Risk perception and the moderating effect of Information asymmetry. (shrink)

Mental arithmetic is characterised by a tendency to overestimate addition and to underestimate subtraction results: the operational momentum effect. Here, motivated by contentious explanations of this effect, we developed and tested an arithmetic heuristics and biases model that predicts reverse OM due to cognitive anchoring effects. Participants produced bi-directional lines with lengths corresponding to the results of arithmetic problems. In two experiments, we found regular OM with zero problems but reverse OM with non-zero problems. In a third experiment, (...) we tested the prediction of our model. Our results suggest the presence of at least three competing biases in mental arithmetic: a more-or-less heuristic, a sign-space association and an anchoring bias. We conclude that mental arithmetic exhibits shortcuts for decision-making similar to traditional domains of reasoning and problem-solving. (shrink)

ABSTRACTHigh-level judgement and decision-making tasks display dynamic bidirectional relationships in which salient cues determine how responses are evaluated by decision-makers, and these responses in turn determine the cues that are considered. In this paper, we propose Kosko's bidirectional associative memory network, a minimal two-layer recurrent neural network, as a mathematically tractable toy model with which the properties of existing bidirectional models, and the behavioural implications of these properties, can be studied. We first derive results regarding the dynamics of the BAM (...) network, and then show how these results can be used to provide an analytically sound explanation for a number of important findings, including coherence shifts in judgement and choice, anchoring effects, and reference point effects. (shrink)