Oriental rug salesmen often start a negotiation by mentioning a ridiculously high price for an item in which youve expressed interest. Similarly, posted full fares on airlines tend to be significantly higher than the price that the average economy- class passenger typically pays.

Which of the following information processing biases best explains why these merchants quote a starting price far higher than the ultimate transaction price? Explain the bias and your reasoning.

1. Anchoring bias
2. Mental accounting bias
3. Framing bias