Anchor effects in appraisals: Does educational background matter?

Purpose This study investigates the anchoring effect in property valuation among students from different educational backgrounds, aiming to determine whether an engineering education mitigates cognitive bias compared to a social science education. Design/methodology/approach An experimental design was implemented during the final examinations in property valuation courses at two Swedish universities. Students from three educational programs – civil engineering in surveying, real estate brokerage, and property management – were randomly assigned either a low or high anchor value and tasked with appraising a property using the comparable sales method. Statistical analyses, including ANOVA and Scheffé’s multiple comparison tests, were conducted to assess the significance of anchoring effects across groups. Findings The results confirm a statistically significant anchoring effect among students with a social science background, while no significant effect was found among engineering students. These findings support the hypothesis that engineering education, with its emphasis on model-driven thinking, reduces vulnerability to anchoring bias. Practical implications The study highlights the importance of educational framing in valuation training. It suggests that incorporating model-thinking and quantitative reasoning into curricula may help mitigate cognitive biases in professional practice. Originality/value By comparing students from distinct educational traditions within a controlled experimental setting, this study contributes novel insights into how cognitive biases manifest in property valuation and how educational background influences susceptibility to anchoring.