What is the effect of anchoring bias on perception?

Anchoring bias significantly impacts perception by leading individuals to rely heavily on the first piece of information they encounter when making decisions. This tendency to "anchor" to initial information can cause people to stick to their prior assumptions, even when faced with new evidence or changing circumstances. As a result, it skews judgment and can inhibit the ability to adjust to new data or perspectives, making it more challenging to modify one's viewpoint or approach.

In the context of decision-making, this resistance to change means that individuals may disregard more relevant or updated information, thus maintaining outdated assumptions. This cognitive bias is particularly critical in management and leadership because it affects how decisions are made and can lead to missed opportunities for innovation or adaptation in dynamic environments.