Anchoring Bias In Critical Thinking Essay

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Heuristics is mental shortcuts or rules of thumbs we apply in our daily lives and these help us in making our decisions.
1. Overconfidence is when an individual overestimates his abilities in judging others and therefore could lead himself into a dangerous situation. A fair example of this would be a manager/supervisor in the workplace who has served the company for many years. As time goes on, this individual might begin considering himself vital to the company and begin behaving irregularly and inconsistently, which eventually would lead to the termination of the employee.
2. Immediate gratification is when immediate results and quick payoffs are desired without looking at the big picture. A good example of this would be when a small business owner decides to expand his business through online social media and major online marketplaces, he/she would be more tempted to use up the “free” ad spaces and not send money on advertising, and only focus on the incoming funds rather than investing the finances for a long term financial advantage.
3. …show more content…
The anchoring bias explains when people take the first piece of information they hear, process it and then the subsequent bits of information and pieces could be rather much more important but they will not manage to make an effect as much as that initial piece of information did. An instance which could be depicted based on this bias is that of a job interview. If a candidate applies for a specific interview and gets the opportunity to interview with the firm, a major topic which the anchoring bias follows is that of salary negotiation. If the interviewer brings up the salary topic, he/she will be the one to most likely offer a price which shall open up a range of possibilities in the candidate’s mind and his counteroffer(s) shall be anchored by the initial
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