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)

Question 2

Tversky & Kahneman (1974)
Do people use anchoring and adjustment to make quick estimations?

Answer 2

People use anchoring and adjustment to quick estimations

Question 3

Anchoring Effect (Quantitative)

Answer 3

High anchors lead to higher numerical estimates than low anchors

Question 4

Tversky & Kahneman (1974)
Do people rely on randomly generated numbers to make quick estimations?

Answer 4

People use generated anchors to make estimates

Question 5

Comparative Judgement

Answer 5

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

Question 6

Absolute Judgement

Answer 6

Provide an estimate of the actual answer

Question 7

Strack and Mussweiler (1977)
Do 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