Journal of Finance and Investment Analysis

The Magic of Figures: Anchoring and Interferences

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  • Abstract 

    This study deals with the question of whether the anchoring effect is resistant to interferences. When many items of new information are presented in quick succession, the human capacity to take them in is soon overstretched. A large number of the new items of information are overlaid or deleted. Whether these interferences can also contribute towards a considerable reduction of the anchoring effect is the question which is examined here using an experimental approach. In this process it is revealed that the figure acting as an anchor is not affected by interferences. The anchoring effect is obviously resistant to interferences. JEL classification numbers: D91, G41, G17.
     
    Keywords: Anchoring, interferences, cognitive bias, stock market forecasting, behavioral finance, experiments.