The tendency to base judgments on an initial number that may or may not reflect market reality is referred to as anchoring and adjustment type bias.
A person uses the cognitive heuristic of "anchoring and adjustment," whereby they begin with a basic notion and then modify their views in light of this notion. When the original anchor deviates from the genuine value, it has been demonstrated that anchoring and adjustment would yield incorrect results.
For instance, a used vehicle seller (or any salesman) can start discussions with a price that is arguably far higher than the fair value. The ultimate price will typically be greater than it would be if the vehicle salesperson had started with a fair or reasonable price since the high price acts as an anchor.
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