Anchoring Bias (Definition + Examples)
Have you ever been to a restaurant or a store with your parents and grandparents and heard them reminisce about the past? Perhaps they’ve said something like, “Back in my day, gas was only 50 cents a gallon!” While the sentiment is a mix of nostalgia and surprise at how prices have risen, there’s a deeper psychological process at play here. They perceive current gas prices as expensive because their reference point—the anchor—is that old price of 50 cents....