In the context of behavioural economics, 'Anchoring' refers to:
A. The complete independence of judgments from any initial values
B. Only the effect of final outcomes
C. Only the use of rational Bayesian updating
D. The tendency for quantitative judgments to be influenced by an initially presented value
Answer: Option D
Solution (By JKSSB Mock Tests)
Anchoring is a cognitive bias in which individuals rely too heavily on an initial piece of information (the anchor) when making subsequent judgments.
No comments yet. Be the first to start the discussion!