In the context of behavioural economics, 'Anchoring' refers to:
A. The complete independence of judgments from any initial values
B. The tendency for quantitative judgments to be influenced by an initially presented value
C. Only the use of rational Bayesian updating
D. Only the effect of final outcomes
Answer: Option B
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.
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