Anchoring bias often causes decisions to rely heavily on the first information encountered. Which bias is this?

• A. Availability heuristic
• B. Representativeness
• C. Framing effect
• D. Anchoring bias

Answer: (D)

Anchoring is the tendency to rely heavily on the first information encountered when making judgments. In this scenario, decisions are pulled toward that initial data point, so the bias described is anchoring bias. Because the first number or fact sets the reference, later information is interpreted in light of that anchor and adjustments are often insufficient, yielding skewed valuations. For example, if a property's starting price is established early, later comparisons may be treated as adjustments from that price rather than true market values. Other biases differ: the availability heuristic centers on what’s most memorable or readily recalled; representativeness judgments hinge on perceived similarity to a category; and the framing effect changes how information is presented, which can alter decisions even if the underlying data is the same.