Come on Down: Investigating a Strategy to Debias the Anchoring Heuristic

Submission Type

Event

Expected Graduation Date

2014

Location

Room E106, Center for Natural Sciences, Illinois Wesleyan University

Start Date

4-12-2014 10:00 AM

End Date

4-12-2014 11:00 AM

Disciplines

Psychology

Abstract

When an individual estimates the price of a good or service, a random number may affect the estimate due to the anchoring heuristic. When anchoring, numbers in individuals’ surroundings remain within their minds and they subconsciously use the number, or anchor, as a starting point for their estimates of a numerical value, which then slants towards the anchor (Tversky & Kahneman, 1974; Chapman & Johnson, 1994). Research (Ariely, Loewenstein, & Prelec, 2003) shows anchored individuals may pay up to three times as much for a product and buy 32% more products (Wansink, Kent, & Hoch, 1998). Because anchoring affects purchases large and small, recent research investigates how to debias, or reduce the negative effects, of the anchoring heuristic. Successful debiasing strategies in the literature are not easily implemented outside the lab where anchoring affects daily purchasing decisions (Strack & Mussweiler, 1997; Chapman & Johnson, 1994; George, Duffy, & Ahuja, 2000).We thus investigated an intervention strategy we could apply in daily life with little disruption to an individual’s daily routine but could reduce the negative effects of the anchoring heuristic.

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Apr 12th, 10:00 AM Apr 12th, 11:00 AM

Come on Down: Investigating a Strategy to Debias the Anchoring Heuristic

Room E106, Center for Natural Sciences, Illinois Wesleyan University

When an individual estimates the price of a good or service, a random number may affect the estimate due to the anchoring heuristic. When anchoring, numbers in individuals’ surroundings remain within their minds and they subconsciously use the number, or anchor, as a starting point for their estimates of a numerical value, which then slants towards the anchor (Tversky & Kahneman, 1974; Chapman & Johnson, 1994). Research (Ariely, Loewenstein, & Prelec, 2003) shows anchored individuals may pay up to three times as much for a product and buy 32% more products (Wansink, Kent, & Hoch, 1998). Because anchoring affects purchases large and small, recent research investigates how to debias, or reduce the negative effects, of the anchoring heuristic. Successful debiasing strategies in the literature are not easily implemented outside the lab where anchoring affects daily purchasing decisions (Strack & Mussweiler, 1997; Chapman & Johnson, 1994; George, Duffy, & Ahuja, 2000).We thus investigated an intervention strategy we could apply in daily life with little disruption to an individual’s daily routine but could reduce the negative effects of the anchoring heuristic.