| Summary: | The main goal of this study is to analyze the role of anchoring bias in answering
questions about financial and economy indicators in Indonesia. Anchoring (or anchoring bias)
refers to people's tendency to make estimates about the likelihood of uncertain events or to
predict or recall certain values or outcomes by considering an initial value and adjusting it
upwards or downwards to yield a final estimate. Such adjustments are often insufficient,
leaving judgments biased in the direction of the initial \"anchor\" value (Tversky & Kahneman,
1974)
To detect or analize anchoring bias, experimental design had been made to be
consistent with Kudryavtsev and Cohen (2010), where participant will be randomly divided
into two groups: �control group� where participants will not received additional information
and are instructed to give their best estimations toward questions regarding financial and
economy indicators in the questionnare and �anchoring group� where participants will be
given the same questions, but before answering every questions participants will be presented
with finance and economic indicators data not directly related as the anchor indicators or
anchor values. Anchors and the target questions are presented with the same order and are
expressed in the same scale. This study wants to see whether the answers in the anchoring
group will be affected by the anchor value so the participants in the anchoring group will give
answer with value closer to the anchor value than the participants in the control group. This
experiment is limited to identify anchoring bias in knowledge about financial and economy
indicator in Indonesia in MBA students UGM, and whether a higher anchoring bias can be
identified in women than in men, and in questions with older topic than questions with newer
topic, and in non-finance major students than in finance major students.
Study result shows that anchoring bias can be identified in all participants answers in
questions regarding financial and economy indicator in Indonesia, but we can�t identified
higher anchoring bias in women than in men, and in questions with older topic than questions
with newer topic. However, a higher anchoring bias is found in non-finance major students
than in finance major students.
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