What cognitive bias may occur when individuals rely too heavily on initial impressions when making decisions?

The cognitive bias that occurs when individuals rely too heavily on initial impressions while making decisions is known as Anchoring Bias. This phenomenon happens when the first piece of information encountered serves as a reference point (the "anchor") for subsequent judgments or decisions. Even when that initial information is irrelevant or misleading, it can disproportionately influence the final decision-making process.

For instance, if someone hears a high initial price for a product, they may perceive all subsequent prices as reasonable or discounted in comparison, regardless of their actual worth. This bias highlights how our cognitive processes can be skewed by early information, often leading to flawed or irrational decisions.

Understanding Anchoring Bias is crucial because it can affect various areas like negotiation, purchasing decisions, and even judgments about people's abilities or characteristics based on limited information, demonstrating how we can be misled by the initial impressions that we form.