Advances in Economics, Management and Political Sciences
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Proceedings of the 2nd International Conference on Business and Policy Studies
Series Vol. 11 , 13 September 2023
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The Anchoring Effect and Related Applications: Cognitive Inertia and Habitual Thinking
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Abstract
By analysis research on the anchoring effect of previous scholars, it was found that irrational judgments in financial markets due to the anchoring effect are significant with the influence of past information. By analyzing data from the equity and securities markets, we find that even professionals can make inaccurate judgments due to the anchoring effect. In addition, we found that the anchoring effect does not require a significant information factor to be implemented, as different experiments have shown that the subconscious mind can also influence people's decisions. However, it is interesting to note that the anchoring effect can also influence behavior in the opposite way, by limiting the sales of a product and thus increasing the sales of that product.
Keywords
anchoring, cognitive inertia, habitual thinking, behavioral
References
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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 2nd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-915371-49-2
- ISBN (Online)
- 978-1-915371-50-8
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/11/20230513
- Copyright
- 13 September 2023
- 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