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Your answer suggests that you’re atypical, and in the face of social norms you follow the beat of your own drummer. We often generate an estimate by thinking of an anchor (e.g., a reasonable house price) and adjust from there but typically fail to adjust sufficiently.Most people shift their behavior toward social norms. We also tend to spontaneously generate information consistent with an anchor.Like most people, your answer suggests you’re somewhat loss-averse.
Learn how decision biases may affect you at Schwab. A room with a viewpoint: Using social norms to motivate environmental conservation in hotels. This is true of all behavior that is beneficial in the long term, but requires immediate self-control: saving vs. Your answer suggests that, like most people, you sometimes over-weight present rewards relative to future ones.And Robert Cialdini** (an expert in persuasion, compliance, and negotiation) undertook pioneering studies to show how we follow the crowd in various ways and settings, ranging from hotel towel re-use, to energy conservation, to littering. We often generate an estimate by thinking of an anchor (e.g., a reasonable house price) and adjust from there but typically fail to adjust sufficiently.Our innate tendency to follow social norms can be a bias, or it can be a useful tool of influence, depending on how it’s harnessed. We also tend to spontaneously generate information consistent with an anchor.Most people, by contrast, are more motivated by the prospect of avoiding a loss.Loss Aversion refers to our tendency to be roughly twice as motivated by the prospect of losing something as we are by gaining something of equal value*.