A shopper sees a $3,000 TV and a similar $2,000 TV and purchases the $2,000 model, anchored by the lower price. This lapse is attributed to which bias?

• A. Availability bias
• B. Confirmation bias
• C. Anchoring bias
• D. Hindsight bias

Answer: (C)

Anchoring bias happens when the first price or piece of information you encounter acts as a reference point for all later judgments, shaping your sense of what’s reasonable. In this scenario, seeing both a $3,000 TV and a $2,000 TV gives the $2,000 price the anchor. Because judgments are made relative to that anchor, the $2,000 option starts to feel like the better deal and is chosen, even if the higher-priced TV might offer more value. This effect isn’t about memory, discovery, or hindsight; it’s about how the initial price reference unduly shapes perceived value and decision making.