Discussion on Anchoring Effect in Our Real Life

Abstract

This paper first introduces the anchoring effect through the introduction of a story and its background. Then, it discusses in detail the definition of anchoring effect, its importance to family, business and society, the attitude and methods that should be adopted to deal with it and its applications in our real life. Among them, this article focuses on the impact of anchoring effect on negotiations, court judgments, auto exhibitions and markets. The anchoring effect will largely affect the outcome of the negotiation, or the outcome of the court judgment, and then affect our real life. It is worth noting the impact of the anchoring effect on the aggregate demand and aggregate supply curves, which will subvert the theory of traditional economics.