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“Anchoring” is a tactic used to manipulate negotiation outcomes. It exploits the fact that people base their estimates of unknown quantities on initial values. If they are given these initial values, their estimations are influenced by them. We will address whether there is a rational justification for people to be manipulated by anchoring. We will also look at how to recognize in a negotiation situation whether the anchor effect is being used against you, how to use the anchor effect to your benefit, or at least how to defuse it if it is being used against you.
