Question

Carl, a corporate recruiter, advises his job applicants to start negotiating salaries from a higher bracket. He suggests this, knowing that the applicant will end up with a higher salary if the hiring employer is susceptible to the judgment error as ________.

1) availability
2) representativeness
3) anchoring and adjustment
4) confirmation
5) overconfidence

Answer 1

Carl recommends leveraging the 'anchoring and adjustment' bias by starting salary negotiations high, as employers will likely anchor to this initial figure and adjust from that point, often leading to a better salary offer.

Step-by-step explanation:

Carl, a corporate recruiter, advises his job applicants to start negotiating salaries from a higher bracket to leverage the anchoring and adjustment bias. This bias refers to the human tendency to rely on the first piece of information offered (the "anchor") when making decisions. For example, in salary negotiations, if an applicant starts with a higher salary demand, the employer is likely to anchor to this number and adjust from there, which could result in a higher final salary offer. Since Carl is aware of this cognitive bias, he recommends using it to the applicant's advantage.