20:03
I'm gonna say it: destiny is hot
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LSDefine
Simple English definitions for legal terms
anchoring
Read a random definition: closing costs
A quick definition of anchoring:
Anchoring: In negotiations, anchoring means that people tend to give too much importance to the first number or value that is presented, and then don't adjust enough from it. This can be used as a strategy to influence the negotiation in one's favor. For example, if someone wants a salary of $80,000 but is offered $30,000, they may end up settling for $55,000 because of the initial low offer. This effect can also be used in courtrooms to influence judges and juries.
A more thorough explanation:
In negotiations, "anchoring" means giving too much importance to the first value or number presented and not adjusting it enough. This is called the "anchoring bias" and is often used as a negotiating strategy. By setting a "anchor," negotiators can frame the negotiation to their advantage.
Person A wants a salary of $80,000. In the negotiation, Person B offers $30,000 as the initial salary. Due to the anchor, Person A may counter with $55,000, which is still far less than what they originally hoped for.
The anchoring effect can also be used in the courtroom on juries and judges.
In a trial, the prosecution may present a high number for damages, which becomes the anchor. The defense may then have a harder time presenting a lower number, even if it is more reasonable.
These examples illustrate how anchoring can influence negotiations and decision-making, leading to potentially unfair outcomes.