Anchoring is a mental shortcut where the first number you encounter becomes a reference point for every judgment that follows, even when that number is arbitrary or irrelevant to the actual value of something.
Retailers use this constantly. A sweater originally priced at 120 dollars and marked down to 60 dollars feels like a great deal, even if 60 dollars was always a fair price. The crossed-out original number does the psychological work, not the actual value of the item.
Being aware of anchoring helps in negotiations and big purchases alike. Researching a fair price independently, before seeing the seller’s number, is one of the simplest ways to avoid being anchored by someone else’s starting point. This is educational content only.