Anchoring Effect and Salary Negotiation

Abstract

The anchoring effect is now frequently used in wage negotiations. This review article aims to discover the potential impact of the anchoring effect in wage negotiations. In the main body, we will analyze the potential impact of anchoring effects in three areas: anchoring strategies in wage negotiations, the impact of anchoring on wage differentials, and mitigating anchoring effects in wage negotiations. After the analysis, we will find that the anchoring effect stealthily has many potential impacts on wage negotiations.