The too-much precision effect: When and why precise anchors backfire with experts

• Main Authors: LOSCHELDER, David D., FRIESE, Malte, SCHAERER, Michael, GALINSKY, Adam D.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: anchoring; judgment; negotiation; first offers; precision; experts versus amateurs; open data; open materials; Organizational Behavior and Theory; Organization Development
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5171; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6170/viewcontent/Too_much_precision_effect_2016_PS_av.pdf
• Institution: Singapore Management University

Past research has suggested a fundamental principle of price precision: The more precise an opening price, the more it anchors counteroffers. The present research challenges this principle by demonstrating a too-much-precision effect. Five experiments (involving 1,320 experts and amateurs in real-es...