Anchoring
/ˈæŋkərɪŋ/
Definitions
- (n.) A principle in contract or tort law where an initial reference point influences subsequent judgments or decisions.
The court noted that the plaintiff's compensation claim was affected by the anchoring effect of prior settlements.
- (n.) A technique in negotiation or arbitration where the first offer sets a benchmark that influences the outcome.
During the settlement talks, the defendant’s opening figure functioned as an anchoring point.
Forms
- anchoring
Related terms
See also
Commentary
Anchoring is often examined in legal negotiation theory and behavioral law and economics, reflecting how initial figures or terms can disproportionately influence final agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.