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Title:

The anchoring effect in the terms of behavioural economics

ORCID:

0000-0003-2167-6838

Subject and Keywords:

behavioural economics   cognitive biases and heuristics   anchoring effect   incidental environmental anchors   basic anchoring   self-generated anchors

Abstract:

The assumptions of rational choice or, more generally, standard economic theory have had great success regarding their contributions to economic theory. However, some of their assumptions are systematically inconsistent with some real-world observations and controlled experiments. These observations strongly remark on the existence of cognitive biases and heuristics. It is assumed that anchoring is one of the most robust cognitive bias, since it works implicitly, without an individual’s awareness. In this study, the anchoring effect will be discussed and analysed regarding its types and empirical findings. The research aims to distinguish the anchors in terms of their types. As a result, the author discovers five types of anchors: regular informative anchors, self-generated anchors, regular uninformative anchors, basic anchors, and incidental environmental anchors. The author claims that regular informative anchors should not be considered a cognitive bias, since their informativeness levels are sufficient to make rational estimations for unknown values. Moreover, since benefitting from regular informative anchors does not violate the rationality principle, they are not a part of a study of behavioural economics.

Place of publishing:

Wrocław

Publisher:

Wydawnictwo Uniwersytetu Wrocławskiego

Date issued:

2020

Resource Type:

text

Detailed Type:

article

Identifier:

ISSN 1733-5779   ISSN 0239-6661

DOI:

10.19195/1733-5779.34.10

Source:

PAd 102060 II

Language:

eng

Abstract Language :

pol

Relation:

Studenckie Prace Prawnicze, Administratywistyczne i Ekonomiczne, ISSN 1733-5779. Nr 34, 2020, s. 147-159

Is version of:

Czasopisma Naukowe w Sieci (CNS)

Access rights:

The use of this material is allowed only with accordance of applicable rules of fair use or other exceptions provided by law, and any broader use requires the permission of the authorized entity

License:

Making materials available on the basis of the agreement with the owner of the property copyrights

Rights holder:

Copyright by Wydawnictwo Uniwersytetu Wrocławskiego Sp. z o.o.

Autor opisu:

WR U/PAdbg