Behavioral Economics and Its Role in Shaping Consumer Decision-Making in the 21st Century

Abstract

This article delves into the principles of behavioral economics and their influence on modern consumer behavior. It examines the cognitive biases and heuristics that guide decision-making and analyzes how these psychological factors impact markets, pricing strategies, and public policy. The paper concludes by offering insights into how businesses and governments can better tailor their strategies to reflect human irrationality.