Perspective taking does not moderate the price precision effect, but indirectly affects counteroffers to asking prices

Leib, Margarita; Kee, Karin; Loschelder, David D.; Roskes, Marieke

doi:10.1016/j.jesp.2022.104323

Cited by 3 publications

(1 citation statement)

References 57 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…It is possible to increase the potency of the first offer by making it more precise (Leib et al, 2022;Loschelder et al, , 2017. A precise first offer leads the responder to adjust from it in smaller steps (Frech et al, 2020) as well as to believe that the offer is more plausible and the sender is more competent (Frech et al, 2020;Loschelder et al, 2017; but see Leib et al, 2022) and better aware of the real price of the product under negotiation, which all leads to a higher impact of the anchor. Although using a precise first offer can be a viable strategy, it is not universally advantageous.…”

Section: Negotiationmentioning

confidence: 99%

Anchoring effect in business

Bahník,

Yoon

2023

Preprint

View full text Add to dashboard Cite

In many business and managerial decisions, accurate estimation of numeric attributes is crucial, but such estimates are often biased by a previously considered value—a cognitive bias known as the anchoring effect. This paper provides an overview of the current state of the literature on the anchoring effect, with a particular focus on its applications in business settings. First, we summarize different processes that may underlie the anchoring effect, which include conversational inferences, insufficient adjustment from the anchor value, selective accessibility of information compatible with an anchor, and distortion of a response scale. Second, we review the applications of anchoring across various business practices, such as predictions, valuations, negotiations, auctions, promotions, and job performance evaluations. We provide examples of potential sources of anchors in these domains and discuss limitations of the existing studies. Next, we describe the challenge of debiasing anchoring and introduce potential strategies for reducing the influence of the anchoring effect. Finally, we discuss topics that have been underexplored and suggest avenues for future research on the anchoring effect.

show abstract