Anchoring in Negotiations

A cognitive bias where the first number mentioned (the “anchor”) sets the boundaries for the entire negotiation.

• Strategy: Try to be the first to set the anchor if you have good information.
• Counter-strategy: If the other party sets an aggressive anchor, immediately re-anchor or move the conversation away from that specific number.
• Why it works: Human brains latch onto initial values and use them as reference points for all subsequent adjustments.