#AnchoringEffect

Imagine entering a Thai street market and seeing a beautifully woven silk scarf with a price tag of 2,000 baht. Even if you believe the actual value is lower, that first price sets a reference point. When the vendor offers you a “special price” of 1,200 baht, it feels like a bargain—regardless of the true worth of the scarf. This common negotiation scenario is a classic example of the “anchoring effect,” a psychological phenomenon that subtly but powerfully sways our decisions, often without us noticing.