Ever wondered why smart business leaders, even the best of the best, fall for irrational decisions? It’s not lack of intelligence—it’s the unseen mental shortcuts, like anchoring bias, that subtly shape their decisions. This deceptive cognitive trap influences everything from negotiations and pricing to hiring decisions, shaping your choices without you even realizing it.
So, today we are exploring how the anchoring bias manipulates your perception, sometimes to genius effect, sometimes to disastrous consequences. I’ll share three powerful strategies to break free from the anchoring effect and reveal the shocking valuation blunder that left investors shaking their heads.
Tune in now if you’re ready to take back control of your decision-making and lead with clarity. And for a deeper dive, check out my book The Mammoth in the Room, where I break down evolutionary decision-making biases and how to outsmart them for better business results.
In this episode:
-just Introduction to the anchoring bias
- The 999 iPhone trick
- The science behind anchoring bias
- Trap 1: The negotiation trap
- Trap 2: The pricing trap
- Trap 3: The hiring trap
- 3 strategies to overcome anchoring biases
Grab your copy of Nicolas' book, The Mammoth in the Room, here: https://mammothleadershipsciences.com/book
Resources Mentioned in the Episode:
Harvard Business Review: The Hidden Traps in Decision Making, John S. Hammond, Ralph L. Keeney, and Howard Raiffa (September–October 1998)
https://hbr.org/1998/09/the-hidden-traps-in-decision-making-2
Tversky, A., & Kahneman, D. (1974). Judgment under Uncertainty: Heuristics and Biases. Science 185,1124-1131(1974). DOI:10.1126/science.185.4157.1124
https://www.science.org/doi/10.1126/science.185.4157.1124
Tversky, A., & Kahneman, D. (1981). The framing of decisions and the psychology of choice. Science, 211(4481), 453–458.
https://sites.stat.columbia.edu/gelman/surveys.course/TverskyKahneman1981.pdf
Get in Touch:
Website: https://www.mammothleadershipsciences.com
LinkedIn: https://www.linkedin.com/in/nicolaspokorny
YouTube: www.youtube.com/@MammothLeadershipSciences
