Start high in negotiations and low in auctions (opens in new tab)

(businessinsider.com)

1 pointsvtry13y ago2 comments

2 comments

2 comments · 1 top-level

vtryOP13y ago· 1 in thread

starting prices are a form of 'anchor' - a piece of information which is known to affect subsequent decisions. As the authors note, anchoring has a powerful influence on our reasoning:

vtryOP13y ago

It also turns out that, contrary to conventional wisdom, making the first offer is also a good strategy:

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