In this video, you will learn about anchoring and adjustment. #anchoring #adjustment #wallstreetmojo #decisionmaking #cognitivebias #subconscious Chapters: 00:00 – Introduction 00:24 – What are anchoring and adjustment? 01:23 – Mechanism 02:27 – Anchoring and adjustment examples 03:19 – Anchoring and adjustments heuristics in finance 03:56 – Conclusion What are anchoring and adjustment? When one gives a person a piece of information initially, they stick to that or anchor it while making any decision. It is known as anchoring. A person may deviate from the anchor and make some adjustments. But they shall always stay within the purview of the anchor, and any decision they take will be in line with the anchor. (Explained in detail in the video) Mechanism Anchoring is a cognitive bias where people rely more on the facts when making decisions. While anchoring is a cognitive bias, adjustment to an anchor is a conscious decision that a …
