Advances in Economics, Management and Political Sciences

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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 56 , 01 December 2023


Open Access | Article

Three Applications of the Anchoring Effect

Yu Liu * 1
1 Beijing No.2 Middle School, Beijing, China, 100062

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 56, 88-91
Published 01 December 2023. © 01 December 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 Yu Liu. Three Applications of the Anchoring Effect. AEMPS (2023) Vol. 56: 88-91. DOI: 10.54254/2754-1169/56/20231068.

Abstract

To find out the relationship between psychology and economics, many people try to study the reasons that lead people to make choices. This paper aims to explain the influence of the “anchoring effect” in behavioural economics on consumption, investment, and food intake. Through reading the previous literature review and the experiments, and based on the definition of the anchoring effect in Thinking Fast and Slow by Daniel Kahneman, three real-life applications of the anchoring effect were identified. In the anchoring effect in consumption, investment, and food intake, the anchoring price is proportional to people’s price estimates. Anchors can be divided into high anchor conditions and low anchor conditions in those cases. However, possible biases in some of the experiments mentioned in some of the citations and related solutions are also mentioned. In a complete decision-making process, people’s choices will be influenced by multiple anchors, and those anchors are always related to each other.

Keywords

anchoring, consumption, investment, food intake

References

1. Zong, Yi, and Xiaojie Guo. “An Experimental Study on Anchoring Effect of Consumers’ Price Judgment Based on Consumers’ Experiencing Scenes.” Frontiers, Frontiers, 7 Jan. 2022, www.frontiersin.org/articles/10.3389/fpsyg.2022.794135/full.

2. Kahneman, D(25 October 2011). Anchor. Thinking fast and slow.p.119.

3. Neto,J.C., Filipe.J.A.,Ramalheiro. and B. “Neuromarketing: Consumers and the Anchoring Effect”.Int. J Latest Trends Fin.Eco. Sc.Vol-1 No.4 December, 2011 Available at: https://repositorio.iscte-iul.pt/bitstream/10071/14171/1/Neuromarketing%20Consumers%20and%20the%20Anchoring%20Effect.pdf

4. Shan, L., Diao, H., & Wu, L. (2020). Influence of the framing effect, anchoring effect, and knowledge on consumers’ attitude and purchase intention of organic food. Frontiers in Psychology, 11. Available at: https://doi.org/10.3389/fpsyg.2020.02022

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8. Ku, G., Galinsky, A. D., & Murnighan, J. K. (2006). Starting low but ending high: A reversal of the anchoring effect in auctions. Journal of Personality and Social Psychology,90(6), 975–986. Available at: https://doi.org/10.1037/0022-3514.90.6.975

9. Marchiori, D., et, al. “The portion size effect on food intake. An anchoring and adjustment process?”Appetite, 2014, p.108. Available at: https://healthycognitionlab.org/wp-content/uploads/2016/02/2014_Marchiori_Papies_Klein_Appetite_PSE_anchoring.pdf

10. Roberto, C. A., & Kawachi, I. (2014). Use of psychology and behavioral economics to promote healthy eating. American Journal of Preventive Medicine, 47(6), 832–837. Available at: https://doi.org/10.1016/j.amepre.2014.08.002

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 Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-159-9
ISBN (Online)
978-1-83558-160-5
Published Date
01 December 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/56/20231068
Copyright
01 December 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

Copyright © 2023 EWA Publishing. Unless Otherwise Stated