A Neuroscientific Explanation of Anchoring Bias in Strategic Decision-Making: From Dual-Process Models to Neuroleadership Strategies

safiyeh zaeri esfahani¹ Mahboobeh sadat fadavi² Badri shsh talebi³ Hamid azizi malek abadi⁴

1) Department of Higher Education Management, Isf.C., Islamic Azad University, Isfahan, Iran
2) Department of Higher Education Management, Isf.C., Islamic Azad University, Isfahan, Iran
3) Department of Educational Management, Isf.C., Islamic Azad University, Isfahan, Iran
4) Department of Medical Basic Sciences, Isf.C., Islamic Azad University, Isfahan, Iran

IOI Code : ACZF-ACABFF
Publication : 6th.International Congress on Management, Economy, Humanities, Education and Business Development(6icmba.ir)
Abstract :
    Anchoring bias is one of the most common cognitive biases in judgment and decision-making. It occurs when initial information serves as a mental reference point and disproportionately influences subsequent information processing, the evaluation of alternatives, and final choices. This phenomenon can lead to insufficient adjustment in judgment and reduced decision-making accuracy, even when the initial information is incomplete, irrelevant, or insufficiently credible. Within the framework of cognitive neuroscience and neuroleadership, explaining this bias requires examining the interaction of attentional processes, memory, information evaluation, emotional processing, and cognitive control. In this context, the prefrontal cortex plays a role in evaluating evidence, reconsidering initial assumptions, and regulating cognitive responses. Meanwhile, the amygdala and related emotional processing networks may, under certain conditions, influence attentional orientation and judgment by prioritizing emotionally salient and threatening information. Furthermore, stress and changes associated with the hypothalamic–pituitary–adrenal (HPA) axis and cortisol secretion may affect cognitive functions involved in information evaluation, depending on the intensity and duration of stress and the decision-making context. However, these mechanisms are not specific to anchoring bias. Persistent reliance on initial information can have several consequences in organizational settings, including inaccurate employee evaluations, inappropriate cost estimations, reduced negotiation quality, inefficient resource allocation, and strategic decisions based on initial assumptions. Accordingly, strategies such as making independent estimates before receiving others proposals, establishing objective decision-making criteria, actively seeking contradictory evidence, examining alternative scenarios, and systematically reconsidering initial judgments can help reduce the influence of this bias. Overall, understanding the cognitive and neuroscientific mechanisms underlying anchoring bias and translating this knowledge into practical exercises in management training can provide a foundation for strengthening cognitive self-awareness, critical information evaluation, and evidence-based decision-making within the framework of neuroleadership.

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