Anchoring point

An anchoring point is created by the party first putting their offer on the table. The theory behind this is that this will create a reference point for the counterpart from which any further discussions will originate from, even though the counterpart had a completely different number in mind.

Several studies have been done on this topic with very interesting outcomes. For instance, one study* had 52 judges read a case about a theft. They were however told that the prosecutor's demand with regards to prison time were to be decided by the judge throwing a pair of dice. The dice was rigged so that one group got low numbers and the other high numbers. The group with low numbers gave an average sentence of 5 months while the group with high dice numbers ruled for an average of 8 months, a 60% difference!

Used correctly, anchoring points can be a very effective tool. It is also important to learn to recognize and how to diffuse them when it is being used against you.

*Playing Dice With Criminal Sentences: The Influence of Irrelevant Anchors on Experts' Judicial Decision Making (2006) by Birte Englich, Thomas Mussweiler, & Fritz Strack.