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Placeholder Lesson:
** This lesson is generated with AI assistance and approved by Danny Nelson. This lesson will communicate the essence of the topic for now until Danny can create a full lesson. **
Anchoring bias occurs when people rely too heavily on the first piece of information they encounter.
This initial “anchor” influences later decisions, even if it’s irrelevant or misleading.
For example, if someone first sees a high price, anything lower seems like a deal.
The anchor distorts judgment by pulling estimates toward it.
As a result, decisions may not reflect true value or reality.