What is anchoring bias and how does the first number affect a negotiation?
Why the first number wins — the mechanism, and how to set and resist anchors
Anchoring is the tendency for an initial number to pull subsequent estimates and offers toward it, even when that number is arbitrary or irrelevant. It’s one of the most reliably replicated effects in judgment research, which is why the first offer in a negotiation matters far more than people expect.
People assume they reason from the facts to a number. In practice, the first number on the table reshapes the facts: it becomes a reference point that every later judgment is quietly adjusted from — and the adjustment is almost always too small. Below are the core practices for using anchoring honestly and defending against it, each with the mechanism behind it.
The practices (6)
The first number becomes the reference point both sides adjust from, and adjustments are systematically insufficient, so the final figure lands closer to the anchor than to a neutral midpoint. Making the first offer lets you set that reference rather than react to it.
- 1Only anchor first when you have a credible sense of the real value range.
- 2Set the anchor ambitious but justifiable — too extreme invites dismissal.
- 3Pair the number with a reason, so it reads as principled rather than arbitrary.
Anchoring is among the most robustly replicated effects in judgment research, and negotiation studies find first offers tend to predict final outcomes.
Honest caveat: When you lack good information about value, anchoring first can backfire by revealing a low ceiling; the advantage assumes you’re reasonably informed.
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