People's estimates of numerical quantities are systematically biased towards their initial guess. This anchoring bias is usually interpreted as sign of human irrationality, but it has recently been suggested that the anchoring bias instead results from people's rational use of their finite time and limited cognitive resources. If this were true, then adjustment should decrease with the relative...

BACKGROUND AND PURPOSE Determining the minimal clinically important difference (MCID) is essential for evaluating novel therapies. For acute ischemic stroke, expert surveys have yielded MCIDs that are substantially higher than the MCIDs observed in actual expert behavior in guideline writing and clinical practice, potentially because of anchoring bias. METHODS We administered a structured, in...

Two experiments examined the impact of financial incentives and forewarnings on judgmental anchoring effects, or the tendency for judgments of uncertain qualities to be biased in the direction of salient anchor values. Previous research has found no effect of either manipulation on the magnitude of anchoring effects. We argue, however, that anchoring effects are produced by multiple mechanisms—...

Abstract Through a large-scale online field experiment, we provide new empirical evidence for the presence of anchoring bias in people’s judgement due to irrational reliance on piece information that they are initially given. The comparison stimuli and respective responses across different tasks reveals positive, yet complex relationship between anchors participants’ predictions outcomes events...

Profitability and investment are becoming the new focus of empirical asset pricing. This paper examines the extent to which their return predictability is attributable to behavioral bias, specifically, investors’ tendency to anchor on 52-week high. Based on a return decomposition methodology developed by George, Hwang, and Li (2014), two profitability measures (operating profitability, return o...

ABSTRAK
 Suci Sudani, Fitria. 2022. Analisis Informasi Keuangan Dalam Meminimalisasi Availability Bias, Representative Anchoring Bias and Adjustment Dan Overconfidence Pengambilan Keputusan Investasi (Studi Pada Investor Di Galeri Syariah UIN Raden Mas Said Surakarta). Skripsi, Fakultas Ekonomi dan Bisnis Islam Program Studi S1-Manajemen IAIN Salatiga. Pembimbing: Imanda Firmantyas Putri P...

An “unprocessed risk” is collection of simple lotteries with a reduction-rule that describes the actual-payoff to the decision-maker as a function of realized lottery outcomes. Experiments reveal that the willingness to pay for unprocessed risks is consistently biased towards the payoff-level in the unprocessed representation. The “anchoring-to-frame” bias in cases of positive framing is signif...