Anchoring and Adjustment Bias and Its Applications

Abstract

The anchoring bias is one of the most robust and widely researched psychological phenomenon that are constant across many domains of human judgment and decision making. Similarly, the area of personality has also been researched to a high degree of depth, with various of theories and models developed throughout time. With the recent growth in public awareness on personalities, more researches has been done on how personality explains characteristics and actions. Despite the prevalence of anchoring bias and personality, researches have only recently begun to investigate the relationships between the two and how it applies to various scenarios. This paper identifies the knowledge gap of the missing relationship between how personalities would affect real estate agents appraisal differently when anchoring bias is presented. This paper reviews past studies on both anchoring bias and personality, filling in the gap by using the big five personality model to categorize real estate agents and analyse their unique and common reactions to anchoring bias.