If you enjoy the content of this video, this is just a short clip from the much longer series that goes through 21 of our most common thinking errors, biases and fallacies. You can watch the full series here on YouTube by clicking the link below.

21 Mind Traps FULL series  - https://youtu.be/nYYkRaU0xh8


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This video is a quick overview of some of our most common thinking errors. If you would like to go deeper into this topic I highly recommend the following books which inspired this video series :

📕Thinking, Fast and Slow by Daniel Kahneman https://amzn.to/3Wn6bz8
📕The Art of Thinking Clearly by Rolf Dobelli https://amzn.to/3jxJWI5
📕Super Thinking by Gabriel Weinberg & Lauren McCain https://amzn.to/3jm0CCo
📕The Skeptics Guide to the Universe by Dr. Steven Novella https://amzn.to/3C4dnYL

If you are more into Audiobooks, here is a link to that. You can get two of these books for free if you sign up for a free Audible trial with the link below. 

🎧Grab the Thinking, Fast and Slow audiobook on an Audible trial with 2 free books - https://amzn.to/3A5r32l



Here are some other videos from the channel you may be interested in watching…

📽️Atomic Habits (Detailed Summary) - https://youtu.be/PZ7lDrwYdZc

📽️Rich Dad Poor Dad | (Detailed Summary)  https://youtu.be/eDa1U9qJKxo

📽️The Laws of Human Nature (Detailed Summary) -https://youtu.be/uhWzVdGmX2w

📽️The 7 Habits of Highly Effective people (Detailed Summary) https://youtu.be/A-LJ6wvk7Cw
 
📽️The Four Agreements (Detailed Summary) https://youtu.be/gpwuq5wOvwI
 
📽️Limitless by Jim Kwik (Detailed Summary) https://youtu.be/naEkf_As9kU




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The Anchoring Effect Whenever we have to guess something, let's say the population of Russia, we use anchors.

Starting with something we know for sure to be true, so it must be greater than 1, must be less than 7 billion, and is less than the population of China.

We then take these anchors and explore the unfamiliar territory.

Unfortunately, we use anchors when we don't need to.

Take a moment to pause and look at these 2 questions.

Is the height of the tallest redwood tree more or less than 1200 feet?

What is your best guess about the height of the tallest redwood?

If we ask group A these 2 questions and group B these 2 questions, we would consistently get very different answers because of the anchoring effect.

The words and numbers we use anchors people's decisions.

But the anchoring effect doesn't only apply to numbers that appear informative, such as in the tree example.

According to Kahneman, anchors that are obviously random can be just as effective as potentially informative anchors.

An experiment was conducted on German judges with an average of 15 years experience.

Each judge was read a description of a woman who had been shoplifting, then asked to roll a pair of dice, which were loaded to only add up to 3 or 9.

As soon as the dice stopped, they were asked to answer how long they would sentence this woman.

The judges who rolled a 9 on average gave her an 8-month sentence.

The judges who rolled a 3 on average gave her a 5-month sentence.

The researchers found that the anchoring effect was influencing their judgments.

Numerous other studies using arbitrary numbers like the last digits of phone numbers or social security numbers also confirmed our anchoring bias.

In sales and negotiations, anchors are being used all the time.

And there will be people who are willing and able to set up this mind trap and exploit the anchoring effect against you.

The car salesman setting a high price from the start so that the price that he actually wants to get from you seems like a good deal.

The $150 dress at the front of the store sets the anchor for the $50 dress at the back of the store.

Be sure to check out the full link series where we go through 21 of the most common mind traps, thinking errors, biases, effects and other phenomenon that have the biggest impact on your thinking and decision making.


Speaker 0: The Anchoring Effect Whenever we have to guess something, let's say the population of Russia, we use anchors. Starting with something we know for sure to be true, so it must be greater than 1, must be less than 7 billion, and is less than the population of China. We then take these anchors and explore the unfamiliar territory. Unfortunately, we use anchors when we don't need to. Take a moment to pause and look at these 2 questions.

Is the height of the tallest redwood tree more or less than 1200 feet? What is your best guess about the height of the tallest redwood? If we ask group A these 2 questions and group B these 2 questions, we would consistently get very different answers because of the anchoring effect. The words and numbers we use anchors people's decisions. But the anchoring effect doesn't only apply to numbers that appear informative, such as in the tree example.

According to Kahneman, anchors that are obviously random can be just as effective as potentially informative anchors. An experiment was conducted on German judges with an average of 15 years experience. Each judge was read a description of a woman who had been shoplifting, then asked to roll a pair of dice, which were loaded to only add up to 3 or 9. As soon as the dice stopped, they were asked to answer how long they would sentence this woman. The judges who rolled a 9 on average gave her an 8-month sentence.

The judges who rolled a 3 on average gave her a 5-month sentence. The researchers found that the anchoring effect was influencing their judgments. Numerous other studies using arbitrary numbers like the last digits of phone numbers or social security numbers also confirmed our anchoring bias. In sales and negotiations, anchors are being used all the time. And there will be people who are willing and able to set up this mind trap and exploit the anchoring effect against you.

The car salesman setting a high price from the start so that the price that he actually wants to get from you seems like a good deal. The $150 dress at the front of the store sets the anchor for the $50 dress at the back of the store. Be sure to check out the full link series where we go through 21 of the most common mind traps, thinking errors, biases, effects and other phenomenon that have the biggest impact on your thinking and decision making. You

See all Escaping Ordinary (B.C Marx) transcripts on Youtube

How to use the Anchoring Effect (and not have it used against you)