Drop The Anchor

I've written before about behavioral science, and my interest in the same, especially in the sub-area of economics.  In short, it's the study of why people persist doing certain things, even though the logical quantitative answer is to do something else.
 
There are a variety of terms that describe what causes these events.  One of them is referred to as 'anchoring', which is when people use initial information as a reference point for decisions.

For example, a car dealer might show someone a very expensive vehicle with a high price before showing a more modestly priced version.  That's more likely to make the buyer think they're getting a good deal for the latter car.

I'm having issues with anchoring right now, thanks to the process of buying and selling a house.  It's a great test of allowing (or not allowing) anchoring to influence behavior. 

The seller has to set a price, and although everyone assumes they'll take less, it still establishes a point from which negotiations start.  It's the same for a prospective buyer, who offers a purchase price that becomes an anchor for a seller counter-offer.

The anchoring effect is very powerful, even in non-financial situations.  Consider a contest to guess how many items are in a basket.  The first person to make a guess is going to influence the others making a guess, even though the first person has no additional knowledge beyond the others.

Probably the best way to avoid being influenced by anchoring is to get more reference points, if not ignoring the first choice/offer altogether.

On the other hand, if you want others to be influenced by your  anchoring, get your information/number out there ASAP!