Hi, Difference bw Anchoring and Adjustment and Conservatism Anchoring and Adjustment - is sticking to original forecast - gtg attached to it. O/wtg old info and U/wtg new info and its an Information Processing Bias. In a case in exam, will a certain number be given to distinguish bw the two biases. 'Impact' example would be: believing current mkt downfall will continue Conservatism - Maintaining prior views by failing to incorporate new info. Its a Belief Perseverance Bias. Unconsciously O/wtg original forecasts and U/wtg new info - 'Impact' example: holding on too long to an investment that has poor outlook (isnt this the same as Anchoring ??) Thanks a lot for your comments !

Behav Finance – confused with Difference bw Anchoring and Adjustment and Conservatism

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