What is anchoring and adjustment bias?

Anchoring and adjustment bias refers to the mechanism underlying cases in which we are influenced by an internal anchor or reference point. When we are faced with a decision or question and we are uncertain about the right option, we try to make an educated guess.

For example, when we are trying to estimate how long it will take us to write a paper. In this case, we start with an initial anchor value that seems reasonable and then adjust until an acceptable answer is found. Because we subconsciously place more importance on the initial value or answer we come up with, we typically fail to adjust sufficiently from there on and our judgment is biased.