Anchoring Bias:

A tendency to fixate on initial information, from which one then fails to adjust adequately for
subsequent information.

Example: 1. A real estate agent shows you the most expensive houses first. All the other homes
seem fairly priced by comparison.

2. If you see a T-Shirt that costs Rs. 1200 then you see a second one that costs Rs. 100. You
are prone to see the second t-shirt as cheap

Confirmation bias:

The tendency to seek out reaffirms past choices and discount information contradicts past
judgements.

Example: 1. Business managers want to confirm they hired the right person so look for good things
they do.

2. Black people are good at sports, Asians are good at maths.

Availability bias:

Randomness error: Tendency of individual to believe that they can predict the outcome of random
events