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Psychology

Anchoring Effect in Negotiation and Pricing Strategies

Quick fact

In a classic study, participants who were shown a higher initial number (like 80% of atmospheric nitrogen) estimated the actual percentage to be significantly higher than those who saw a lower anchor (like 20%), demonstrating the powerful, subconscious pull of anchors on numerical judgments.

Why this is interesting

Have you ever noticed how a $100 shirt seems like a bargain after you first saw it for $200? What if that first number was secretly influencing your judgment more than you think?