TOEFL Speaking Task 3

In behavioral economics, the concept of "anchoring" refers to the tendency of individuals to rely heavily on the first piece of information they receive (the "anchor") when making decisions. Once an anchor is set, subsequent judgments are made by adjusting away from that anchor, often insufficiently. This cognitive bias can significantly influence pricing, negotiations, and consumer choices, as initial numbers or suggestions serve as reference points that skew rational evaluation.

Professor: Let me give you a real-world example from a study in a supermarket. Researchers set up a display of discounted canned soup. In one condition, they put a large sign saying "Limit 12 per customer"; in another, they put "No limit per customer." Shoppers in the first condition bought, on average, 7 cans, while those in the second bought only 3. The number 12 acted as an anchor, making customers think that buying many cans was normal and reasonable. Even though the discount was the same, the anchor influenced how much they perceived as a good deal. Another example: when negotiating a used car price, if the seller starts with $10,000, the buyer's counteroffer tends to be much higher than if the seller had started at $8,000. The initial price anchors the negotiation.