SYSTEMATIC FALLACIES IN THE CONTEXT OF BEHAVIOURAL ECONOMICS: THE CASE OF ANHCORING EFFECT

Abstract

The studies on Behavioural Economics, as known, focuses on which situations people violate rational behavior systematically. Especially the literature that has emerged over the last few decades has described a lot of fallacies that people have. These fallacies are generally named as mental shortcuts or heuristics. This study aims to test the existence of one of these fallacies, the Anchoring Effect. For this purpose, data were collected through a survey from 110 students studying at Yalvaç Büyükkutlu School of Applied Sciences. Maximum amounts that they consent to pay for Private Pension System, Private Health Insurance and monthly car loans have been asked to students. However, while no anchor was given to the control group, the experimental group was given anchors for the payment preferences mentioned in the questions. According to the independent samples test (Mann-Whitney U), all answers differentiated between control and experimental groups. In addition, a smart wristband image was shown to the participants and the question ?how much the maximum price can be? was asked, and before this question, the last three digits of the telephone numbers were asked to be written to the experimental group as an anchor. Although there is no statistical difference between the prices assigned to the product, there is an absolute significant difference.