Behavioral Economics and Consumer Decision Making

Abstract

Behavioral economics challenges traditional economic theories by incorporating psychological insights into consumer decision-making processes. This article explores how cognitive biases, heuristics, and social influences shape consumer choices and market outcomes. It examines the implications of behavioral economics for marketing strategies, policy design, and economic modeling. By analyzing experimental and real-world data, the study provides a nuanced understanding of consumer behavior and its impact on economic systems. The findings offer valuable insights for businesses, policymakers, and researchers seeking to better predict and influence consumer decisions.