The Anchoring Effect

Complete Process Steps 2–17, using Activities 2.1–2.5 and Slides 2.1–2.3. Prepare buyer and seller materials in advance. Conduct the five-minute textbook trading game, record transaction prices, and compare average prices for buyers assigned low (40–50) versus high (80–90) anchors. Discuss how arbitrary numbers influenced negotiations. Extend the discussion to investing: How might an original purchase price or previous stock-price high become an anchor? This investment application is a coach-added discussion, not part of the original activity.