How Anchoring Works

Anchoring exploits a shortcut in how your brain handles numbers. When you are unsure, your brain grabs any reference point and adjusts from there. The problem: that adjustment is almost always too small.

Selective accessibility. The anchor makes certain ideas easier to recall. A high anchor for a house brings luxury to mind; a low anchor brings decline to mind.

Insufficient adjustment. Even when you know the anchor is arbitrary, you adjust too little. Your brain corrects, but it stops short.

The result: whoever sets the first number in a negotiation holds a real advantage, because every later number is judged against theirs.