ANCHORING IS A TERM USED IN NEGOTIATIONS AND SALES WHERE AN OFFICIAL SOUNDING OR OFFICIAL APPEARING INFORMATION (e.g. PRICE) MARKS WHERE NEGOTIATIONS SHOULD START. A PRIME EXAMPLE IS MSRP (MANUFACTURER SUGGESTED RETAIL PRICE) ON AN NEW AUTOMOBILE’S WINDOW STICKER.

Anchoring may appear to have foundations in objective reality; a reality which is assumed can be shared. However, with a small amount of investigation, it can be revealed that certain assumptions and expectations favor one party over another. Charles Tadros, MD August 31, 2021 Saint Louis, Missouri