Q. Which decision-making bias refers to the tendency to give excessive weight to the first information received ?

The correct answer is (C) Anchoring bias.

Explanation:

Anchoring bias refers to the cognitive bias where individuals rely too heavily on the first piece of information (the “anchor”) they receive when making decisions. This initial information serves as a reference point, and subsequent judgments or decisions are influenced by it, even if the anchor is irrelevant or misleading.

– (A) Confirmation bias: This is the tendency to search for, interpret, and remember information in a way that confirms one’s preexisting beliefs or hypotheses, rather than focusing on the first information received.

– (B) Hindsight bias: This is the tendency to see events as being more predictable after they have already occurred (“I knew it all along” effect). It is unrelated to the first information received.

– (D) Availability heuristic: This refers to the tendency to judge the likelihood of an event based on how easily examples come to mind. It is not about giving excessive weight to the first information.