Lecture 4

Question 1

Anchoring-and-Adjustment

Answer 1

“People make estimates by starting from an initial value that is adjusted to yield the final answer” (Tversky & Kahneman 1974, p.1128)

Question 2

Anchoring Effect (Quantitative)

Answer 2

High anchors lead to higher numerical estimate than low anchors

Question 3

Tverskey and Kahneman
Do people use anchoring and adjustment to make quick estimations?

Answer 3

People use anchoring and adjustment to make quick estimations

Question 4

Comparative Judgment

Answer 4

Determine whether an anchor has a higher or lower value than actual answer

Question 5

Absolute Judgment

Answer 5

Providing an estimate of the answer

Question 6

Tversky & Kahneman
Do people rely on randomness;y generated numbers to make quick estimations?

Answer 6

People use generated anchors to make estimates

Question 7

Strack and Mussweiler (1977)
Does plausibility of anchors influence estimates?

Answer 7

• There is an anchoring effect
• people use both implausible and plausible anchors to make estimates

Question 8

Strack and Mussweiler (1977)
Do people engage in the adjustment process when anchors are presented?

Answer 8

People do not adjust from anchors

Question 9

Epley & Gilovich (2001)
Do people engage in the adjustment process when they make estimations based on self-generated anchors?

Answer 9

When making estimations, people adjust from self-generated anchors but not for externally provided anchors

Question 10

Anchoring Effect (Qualitative)

Answer 10

People make use of the immediate piece of information they encounter as a reference to make decisions