Heuristics

Question 1

Anchoring

Answer 1

• A form of priming effect whereby initial exposure to something serves as a reference point and influences subsequent judgements
• Usually occurs without our awareness and involved in contexts such as legal judgements and purchasing decisions

Question 2

Availability

Answer 2

• A heuristic whereby people make new judgements about the likelihood of an event based on how easily an example or instance comes to mind
• E.g. investors may judge the quality of an investment based on the information that was recently in the news, ignoring other relevant facts