A Study On Anchoring Effect On Inflation Expectations And Its Impact On Decision-making Of Economic Behaviors

Anchoring effect refers to the phenomenon that under conditions of uncertainty, the result of decision-making approaches to anchoring value due to impact of it. Since many empirical results had come out, the studies on reasons for anchoring bias and methods for eliminating decision-making bias showed important meaning. There is a little study on the effect of anchoring inflation expectations in the field of current anchoring effect researches. This study had illustrated the impact of external and internal anchor (familiarity with materials and the knowledge of major) on people's judgment on daily knowledge, anchoring bias of inflation expectations and the decision-making differences of economic behaviors.This article included a pre-study and three studies on anchoring effect.Study 1 had researched anchoring effect of daily knowledge by external anchor value and material familiarity and it confirmed the existence of anchoring bias by no significant differences on material familiarity. Study 2 had researched the inflation expectations by external anchor value and knowledge of major and it found that the inflation expectations had significant differences; major knowledge had important impact on judgments on expectation; people of economic major had lower inflation expectations estimates than the ones of non-economic major. Study had researched bias on investment and consumption by level of inflation expectations and it found that level of inflation expectations only had significant differences on savings; major knowledge had significant impact on all aspects except daily consumption. The anchoring effect level of experience due to material differences and internal anchor effect on daily knowledge is significant but not on major knowledge.