Anchoring Effect(Anchoring Effect)

The cognitive bias by which an initial number (the anchor) pulls subsequent judgments toward itself. First demonstrated by Tversky and Kahneman in their 1974 paper “Judgment under Uncertainty,” it appears in price displays, negotiation, hiring decisions, and demand forecasting alike.

Paired with the adjustment heuristic, people tend to drift toward the anchor even when consciously trying to override it. The classic SaaS three-tier pricing layout — where an inflated top plan makes the middle plan feel like a bargain — is one of its most familiar applications.