Initially making a low offer in order to get a bargain on a second-hand item is an example of the
A) anchoring effect.
B) Monty Hall problem.
C) working backward heuristic.
D) framing effect.

Question

Quizplus · Accepted Answer

The anchoring effect refers to the tendency for people to rely too heavily on the first piece of information (the anchor) they receive when making decisions or judgments. In the case of making a low offer on a second-hand item, the seller may have initially stated a higher price, thereby setting an anchor for the buyer's negotiation tactics. The buyer then offers a lower price based on this anchor, in the hopes of securing a bargain.

Initially Making a Low Offer in Order to Get a Bargain