Question

Janice always makes the first offer during salary negotiations because that number will become the starting point for any further discussions. This is an application of what concept? a. representativeness heuristic b. anchoring and adjustment heuristic c. availability heuristic d. algorithm

Answer 1

Answer:

b. anchoring and adjustment heuristic.

Explanation:

Anchoring and adjustment heuristic is a Psychological heuristic in which a person or individual influences others by suggesting a starting point. The other person will then rely on the first information offered and an anchor is then placed. The further judgment is made around that anchor which created a bias toward interpretation of information.  

Janice also used a strategy of anchoring and adjustment bias by giving first offer of salary. This will be considered as anchor which is placed and all the other negotiations will be around that salary anchor which will be used as starting point.