1. Behavioural skills - cognitive bias.
The anchoring effect, or anchoring bias, is a tendency in decision-making to place excessive importance on the first piece of information accessed.
This initial piece of information is known as the anchor.
A common example is the first figure mentioned in a price negotiation.
The reasonableness, or acceptability, of subsequent figures tends - wrongly - to be evaluated by reference to the earlier figure, rather than by objective criteria.
2. Financial modelling - spreadsheets - construction - cell references.
In financial modelling with spreadsheets, anchoring refers to cell references when they're copied around the spreadsheet.
Fully anchored cell references - for example $A$1 in Excel - will stay as $A$1 wherever we copy them within the spreadsheet.
This kind of cell reference is sometimes known as an absolute, fixed or dollarised reference.
Contrasted with a standard relative cell reference - for example A1.
Relative cell references are the default.
- Affinity bias
- Bandwagon bias
- Behavioural economics
- Behavioural skills
- Choice supporting bias
- Cognitive bias
- Confirmation bias
- Default bias
- Dunning-Kruger effect
- Emotional intelligence
- Executive coaching
- Financial modelling
- Hindsight bias
- Impostor syndrome
- Maslow's hammer
- Optimism bias
- Reactance bias
- Self-investment bias
- Self-serving bias
- Social bias
- Source bias
- Status quo bias
- Working effectively with others