• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
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HOME > Archive > 2026 > Volume 14 Number 3 (2026) >
JOEBM 2026 Vol.14(3): 192-195
DOI: 10.18178/joebm.2026.14.3.936

The Anchoring Effect: Mechanisms and Real-World Applications

Zeyan Li
Zeyan Li
Changjun High School International Department, Changsha, China
Email: 1474908477@qq.com

Manuscript received June 5, 2026; accepted August 19, 2026; published September 9, 2026.

Abstract—The anchoring effect is a typical cognitive bias proposed by Tversky and Kahneman, which means that people tend to over-rely on initial or random numerical anchors without adequate adjustment when making judgments under uncertainty. This paper expounds its mechanism, case and significance. Based on Wheel of Fortune and multiplicative estimation experiments, it illustrates how anchors can distort judgments. Dual-process theory illustrates that the automatic and intuitive processing of System 1 rapidly captures initial anchor values without sufficient rational adjustment, which directly generates anchoring bias. The paper then analyzes the practical applications of anchoring in market pricing, salary negotiation, and asset investment. The article mainly emphasizes three examples, respectively are: Sellers set a high reference price; The first offer determines the outcome of the negotiation; Investors focus on market prices rather than intrinsic value. This paper reveals that anchoring is a common and significant bias that broadly affects everyday economic decisions. Understanding it helps individuals to reduce irrational judgment and improve the quality of decision-making.
 
Keywords—anchoring effect, Cognitive heuristic, Economic decision, Reference point

Cite: Zeyan Li, "The Anchoring Effect: Mechanisms and Real-World Applications," Journal of Economics, Business and Management, vol. 14, no. 3, pp. 191-195, 2026.

Copyright © 2026 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).


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