Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 44 , 10 November 2023


Open Access | Article

Anchoring Effect and Its Applications

Guanqi Ye * 1
1 New channel

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 44, 47-51
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Guanqi Ye. Anchoring Effect and Its Applications. AEMPS (2023) Vol. 44: 47-51. DOI: 10.54254/2754-1169/44/20232184.

Abstract

Anchoring effects are commonly present in the economic field, and their existence can bring many problems. The purpose of this article is to study the anchoring effect between individuals, markets, and investments, as well as the impact of the anchoring effect and which factors may affect it based on existing literature and relevant experimental results. Each aspect was studied through some experiments, and through these experiments, the anchoring effect had a significant impact on all three aspects. The result shows that for individuals, their estimates tend to be anchored; for market brands, the image of co-branded brands is influenced by high-visibility brands (anchors); and for investors, through research, it has been found that anchoring effects exist in individuals, markets, and investments, and there are different factors that can affect anchoring effects. For example, if investors have more knowledge reserves, the anchoring effect on them will weaken.

Keywords

anchoring effect, individual, market, investment

References

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3. Furnham, A., Boo, H. C., & McClelland, A. Individual differences and the susceptibility to the influence of anchoring cues. Journal of Individual Differences. (2012).

4. Teovanović, P. (2019). Individual differences in anchoring effect: Evidence for the role of insufficient adjustment. Europe's Journal of Psychology, 15(1), 8. (2019).

5. Simonson, I., & Drolet, A. Anchoring effects on consumers’ willingness-to-pay and willingness-to-accept. Journal of consumer research, 31(3), 681-690. (2004).

6. Esch, F. R., Schmitt, B. H., Redler, J., & Langner, T. The brand anchoring effect: A judgment bias resulting from brand awareness and temporary accessibility. Psychology & Marketing, 26(4), 383-395. (2009).

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-109-4
ISBN (Online)
978-1-83558-110-0
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/44/20232184
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated