Anchoring and Adjustment Bias-Being Influenced by an Initial Figure

question 84

Essay

Anchoring and adjustment bias-being influenced by an initial figure.It is sometimes seen in real estate sales.Before the crash in the real estate markets,many homeowners might have been inclined at first to list their houses at an extremely high (but perhaps randomly chosen)selling price.These sellers were then unwilling later to come down substantially to match offers that reflected what the marketplace thought the house was really worth.

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Definitions:

Admire

To regard someone or something with respect, approval, or warm esteem, often because of their qualities, achievements, or beauty.

Suffix

A morpheme added at the end of a word to form a derivative (e.g., -ation, -fy, -ing, -itis).

Pay

The compensation received by an employee from their employer in exchange for their work or services.

Suffix

A letter or group of letters added to the end of a word to change its meaning or indicate its grammatical function.