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- fallacies and biases pt.3
Welcome back to my ongoing exploration of the mental tricks our brains play on us.
It's been a while since I dove into this series, but these cognitive quirks have been quietly shaping our decisions every single day since I last talked about them.
In this edition, I'm gonna be covering:
Anchoring Effect
Halo Effect
Contrast Effect
Let's get righhhhhhht to it.
1. Anchoring Effect
You're looking at a restaurant menu and see a $45 steak at the top. Suddenly, that $28 pasta dish seems totally reasonable.
But if the most expensive thing on the menu was $18, you'd probably think twice about spending $28 on pasta.
This is the anchoring effect in action. That first price you see – the "anchor" – becomes your reference point for everything else, even when it's completely arbitrary.
And salespeople? They've mastered this game.
Ever wonder why expensive dresses are displayed at the front of the store and cheaper ones at the back?
That $2,000 jacket makes the $400 one seem like a steal.
Real estate agents show you the overpriced house first, then the one they actually want to sell you.
The scariest part? We anchor ourselves all the time.
→ When you're job hunting, that first salary you see becomes your baseline for everything else.
→ When you're negotiating anything, whoever throws out the first number sets the entire conversation.
Your brain uses the first piece of information as a reference point for everything that follows.
2. Halo Effect
You know that feeling when you meet someone who's really attractive, and suddenly they seem funnier, smarter, and more interesting too?
That's the halo effect – one positive trait casts a "halo" over everything else about them.
This explains why first impressions matter so damn much.
Why the honeymoon phase of relationships feels so intoxicating.
When someone's on their best behavior early on, we assume that's who they really are across the board.
But it goes way beyond dating.
Companies with sleek logos seem more competent.
Products with beautiful packaging feel higher quality.
A well-dressed person's ideas carry more weight in meetings, even when the content is identical to someone in a wrinkled shirt.
The sequence matters enormously.
What we learn first becomes the lens through which we see everything else.
It's why that one botched presentation haunts you for months, even after you've nailed a dozen others.
3. Contrast Effect
Your brain doesn't judge things in isolation – it's constantly making comparisons.
And those comparisons can completely warp your sense of value.
Here's the classic example: You're buying a $10,000 car and the dealer offers you a $200 seat cushion. Seems like nothing, right?
But if that same cushion were sitting alone in a store, you'd probably walk 10 minutes to save $10 on it.
This is why luxury stores put their most expensive items front and center.
Why subscription services offer three tiers (they want you to pick the middle one).
Why restaurants have that one absurdly overpriced dish – not because they expect you to order it, but because it makes everything else seem reasonable.
Context shapes perception more than the thing itself.
After a terrible day at work, a mediocre dinner feels amazing.
After scrolling through highlight reels on social media, your perfectly good life feels inadequate.
The contrast creates the experience.
These aren't character flaws – they're features of how our brains make quick decisions.
The goal isn't to eliminate them (good luck with that), but to catch yourself when they're driving.
Notice when you're anchoring on the first number you hear.
Question whether that great first impression is clouding everything else.
Ask what you're comparing things to, and whether that comparison makes sense.
Your brain's gonna keep playing these tricks. But once you know the game, you can choose when to play along.
If you've missed out on pt.1 and pt.2, here you go.
Thank you for taking the time out of your day to read this. Your time is valuable, and you spending it on reading my dials is something I appreciate.
So, thank you.
Godspeed, and have the best week ahead. ⚡️
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