7. Anchoring bias
Anchoring Bias is when we overemphasize a single factor — an “anchor” — in a decision-making process.
In Short: Anchoring Bias causes people to lean too heavily on solitary metrics. It happens because time and attention spans are scarce; in a world that bombards us with information, it’s natural to want to reduce the world to a single guiding factor and live by it.
For Example: Imagine someone who wants to retire, and says: “I’ll retire as soon as I’m eligible for my pension.” Some rough mental math may make the pension seem like the moment of freedom, but calculating retirement readiness depends on much, much more. Anchoring this decision on the single pension factor could mean retiring too soon and having to go back to work someday in less-than-ideal circumstances.