What is ‘anchoring effect’? Anchoring effect is a cognitive bias that the human tendency to rely on an anchor when making decisions. This anchor, usually, is the first piece of information that they receive in that particular context. Examples When a commercial real estate mentions ‘ Two room bedrooms starting at $500/mo’, people will evaluate … Continue reading Anchoring effect – ‘the first numbers matter the most’
The Sunk Costs Fallacy – ‘don’t cry over spilt milk’
What is "sunk cost"? ‘Sunk cost’ is an economics concept that refers to spending money/resources in the past on something that doesn’t bring any utility today. E.g. You pad the gym membership for an entire month, but you will not be able to go to the gym, because you’ve caught a flu or have an … Continue reading The Sunk Costs Fallacy – ‘don’t cry over spilt milk’
Walking the line 