Extremeness Aversion Is a Cause of Anchoring.

Area of Science:

• Cognitive Psychology
• Behavioral Economics
• Decision Science

Background:

• Anchoring is a cognitive bias where individuals rely too heavily on the first piece of information offered (the "anchor") when making decisions.
• Existing research highlights insufficient adjustment from anchors, but the underlying mechanisms remain debated.

Purpose of the Study:

• To investigate whether a desire to avoid making extreme adjustments contributes to the anchoring effect.
• To examine how perceived extremeness of potential adjustments influences behavior.

Main Methods:

• Seven studies with 5,279 participants were conducted.
• Participants estimated unknown quantities, with adjustments influenced by irrelevant cues of extremeness.
• Experimental manipulations varied the maximum allowable adjustment and the proximity of outcomes to the anchor.

Main Results:

• Transparently irrelevant cues of extremeness significantly influenced adjustments from anchors.
• Participants were less likely to make large adjustments when the maximum allowable adjustment was smaller.
• Considering outcomes within a smaller distance from the anchor led to smaller adjustments.

Conclusions:

• Anchoring effects may be partly driven by a psychological desire to avoid adjustments perceived as too extreme.
• The perceived extremeness of an adjustment, rather than its objective magnitude, can shape decision-making.
• Understanding this motivation offers new insights into cognitive biases and judgment processes.