Anchoring Effects

The first number you encounter powerfully shapes your judgment, even when it is completely irrelevant. A seller's opening price, a suggested tip, a sticker on a windshield — each one quietly sets the mental starting point you adjust from, and you rarely adjust far enough.

Once an anchor is set, it shapes every judgment that follows. The same effect appears in salary negotiations, real estate listings, and retail sales. A high opening salary pulls the final offer up; a steep "original" price makes the sale price feel like a steal. Whoever names the first number holds quiet power over the whole conversation.