Anchoring Bias in Consensus Forecasts and Its Effect on Market Prices

By Sean D. Campbell, Steven A. Sharpe. Journal of Financial and Quantitative Analysis, 2007

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The Role of Anchoring Bias in the Equity Market: Evidence from Analysts’ Earnings Forecasts and Stock Returns (2012, unknown): “Campbell and Sharpe (2009) show that professional forecasters anchor their predictions of macroeconomic data such as the consumer price index or non-farm payroll employment on previous values, which leads to systematic and sizeable forecast errors. Baker, Pan, and Wurgler (2009) suggest that anchori”
Natural Analysts in Adaptive Data Analysis (2019, background): “A common cognitive bias that humans experience in analytical tasks is called the anchoring bias [7, 8].”
Information Rigidity and the Expectations Formation Process: A Simple Framework and New Facts (2012, unknown): “7 The fact that β2 is statistically significant whereas the coefficient on lagged inflation is not, in column 2 of Table 1, also suggests that our results are not driven by an “anchoring” bias among professional forecasters, as in Campbell and Sharpe (2009), in which forecasters place disproportiona”