Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Anchoring Effect How a First Number Hijacks Your Brain
Episode 58 of Behavioral Economics with Fexingo dives into the anchoring effect — how an arbitrary first number can warp every decision that follows. Lucas and Luna use a classic 1996 study by Tversky and Kahneman where participants spun a rigged wheel of fortune, then guessed the percentage of UN countries in Africa. The spin's outcome, random as it was, predicted their guesses. We trace the effect into real-world pricing, from real estate listing prices to salary negotiations, and explore why a $150 sweater makes a $50 scarf feel like a steal. We also cover how to defend against…
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