Anchoring bias refers to the tendency for people to rely heavily on the first piece of information they receive when making decisions, even when that information is not necessarily relevant or accurate. This cognitive bias can lead people to anchor their judgments and decisions to an initial reference point, rather than considering a wider range of information or alternative viewpoints.

One of the key ways in which anchoring bias manifests is through the influence of initial impressions or framing on decision-making. For example, if people are presented with a list of options and given an initial reference point, such as a starting price, they may be more likely to anchor their judgments and decisions to that reference point, rather than considering the options independently.

Anchoring bias can also affect the way that people evaluate and compare options. For example, if people are presented with two options and given an initial reference point, they may be more likely to evaluate the options in relation to that reference point, rather than considering their intrinsic value. This can lead to a distorted or biased evaluation of the options.

The phenomenon of anchoring bias can have significant consequences, as it can lead people to make decisions that are not based on objective evidence or a full consideration of the options. In addition, it can contribute to irrational or suboptimal decision-making, as people may become overly reliant on initial impressions or reference points, rather than considering a wider range of information.