Cognitive Bias Entry #0107 Classified Declassified

Why the first number in a negotiation outlives the argument

Both sides argue for an hour and land near the figure one of them said in the first minute. The argument was real. It was also decorative.

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Plate 1 — the range, drawn before the discussion started.

Intuition test — answer before you read on

You must negotiate a figure and you have weak information. What does the research suggest about naming a number first?

Two parties sit down, disagree for an hour, exchange evidence, and settle on a figure suspiciously close to the one that was mentioned before anybody had made a case. Everyone leaves believing the number was reasoned into existence. It was not. It was placed there, and everything after it was measured against it.

What everyone sees

A discussion in which arguments are traded and a fair midpoint emerges. Each concession looks like a response to the merits. The final figure feels earned, because you can recall the reasoning that produced it and the reasoning was, sentence by sentence, sound.

What is actually happening

The first figure named becomes the reference point against which every subsequent figure is judged, and reference points are extraordinarily hard to discard once set. Anchoring survives even when the anchor is transparently arbitrary — experiments have moved estimates by having subjects read an unrelated random number first. In negotiation the effect is stronger, because the anchor arrives with an implied claim: this is the region we are discussing.

Why it stays hidden

Because adjustment feels like independence. Moving away from an anchor produces the sensation of having resisted it, and that sensation is what conceals the fact that the direction and the ceiling of the movement were both set by the anchor. You cannot notice a range you never entered.

Anchoring is not the failure to move. It is that the whole conversation happened inside a region somebody else chose before it began.

Anchoring is not the failure to move. It is that the whole conversation happened inside a region somebody else chose before it began.

The hidden part — entry #0107

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Anchoring is not the failure to move. It is that the whole conversation happened inside a region somebody else chose before it began.

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Sources & further reading 3
  1. Tversky & Kahneman, "Judgment under Uncertainty: Heuristics and Biases", Science, 1974
  2. Galinsky & Mussweiler, "First Offers as Anchors", Journal of Personality and Social Psychology, 2001
  3. Strack & Mussweiler, "Explaining the Enigmatic Anchoring Effect", 1997

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