Which psychological concept refers to favoring the first piece of information encountered regardless of subsequent data?

The anchoring effect is a cognitive bias where individuals rely too heavily on the first piece of information they encounter when making decisions. This initial piece of information serves as a mental "anchor," which influences subsequent judgments and evaluations, even in the presence of new data. For example, if someone first hears that a car costs $30,000, they may perceive a price of $25,000 as a good deal, despite having no other context for evaluating the car's value. This bias illustrates how initial information can disproportionately affect our thinking and decision-making processes, often leading to skewed interpretations or conclusions. The anchoring effect plays a significant role in various contexts, including negotiations, finance, and everyday decisions, highlighting the impact of early information on our cognitive processes.