On Anchoring the Value of something

Anchored to the Beach

(credits – http://www.flickr.com/photos/stawarz/)

Just keep this answer in your mind: What are the last two digits of your mobile number?

If I came to you(you’re sitting in a group of 100 people playing this game) and asked – What will you pay me for THIS(this is something you have no idea of relating to in terms of price – for example a bottle of wine in case you don’t drink any or an abstract painting Etc)?

Remember the last two numbers of your mobile number, would you be willing to pay that much for this?  Just say Yes or No.

Now, please bid for this item the best price you can provide so that you could win this from the rest of 99 people around you.

You’d be surprised but it turns out that, the last two numbers of your mobile make a huge difference to what you would be ready to pay.  The last two digits of your mobile were what psychologists call an ANCHOR.  The higher the number, the higher you would be ready to pay or the higher you would value that item.

This is REAL and based on an experiment done by Drazen Prelec from MIT. Interested in more stuff like this – you should be reading, Dan Ariely’s book, Predictably Irrational.

Posted by Digvijay “VJ” Singh Rathore

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s