A car salesman first shows a customer a luxury model priced at $80,000, then immediately p

A) Confirmation Bias

B) Anchoring Effect

C) Availability Heuristic

D) Dunning-Kruger Effect

Explanation

The Anchoring Effect describes the cognitive bias where an individual's decision-making is influenced by a particular piece of information (the "anchor") presented early in the process. The initial high price of the luxury car serves as an anchor, making the subsequent $40,000 price seem more reasonable by comparison.

Practice More General Knowledge Questions

A car salesman first shows a customer a luxury model priced at $80,000, then immediately presents a standard model at $40,000. The customer perceives the $40,000 car as a much better deal, even though its market value is closer to $35,000. Which cognitive bias is at play here?

Explanation