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anchoring bias

Anchoring

How we think and the way that we perceive information can have a powerful impact on our decisions. Often, the first piece of information we receive is what we will use for future reference when making decisions – and whether we feel those decisions are good or bad. This is referred to anchoring or anchoring bias and is very well described in Daniel Kahneman’s book, Thinking, Fast and Slow. Let’s look at an example. Recently, I had a student ask me regarding his benefit package and starting salary he was offered from a potential employer. This student will finish a master’s degree in May and this will be the first “real” job the student will have out of school. Initially, the employer was talking to the student about project management and leadership opportunities. When it got down to brass tacks, the company was talking about a potential starting salary of […]

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