Do Incidental Environmental Anchors Bias Consumers’ Price Estimations?

Abstract

It is well-established that decision makers bias their estimates of unknown quantities in the direction of a salient numerical anchor. Some standard anchoring paradigms have been shown to yield pervasive biases, such as Tversky and Kahneman’s (1974) classic 2-step task which includes a comparative question followed by an estimation question. In contrast there is much less evidence for the claim that incidental environmental anchors can produce assimilative effects on judgments, such as the amount people are willing to pay for a meal being greater at a restaurant calledStudio 97 compared to one called Studio 17. Three studies are reported in which the basic incidental environmental anchoring method of Critcher and Gilovich (2008) is employed to measure consumer price estimations. No statistically significant evidence of incidental anchoring was obtained. In contrast, robust standard anchoring effects were found. The results suggest that anchoring is limited to situations which require explicit thinking about the anchor.