Journal of Applied Business, Economics and Strategic Management ISSN: 3139-1664 (Online)

Authors: Dr. Arjun Mehta, Ms. Priya Kapoor

Abstract: Behavioral economics has emerged as a critical interdisciplinary approach combining psychology and economics to understand human decision-making patterns. Traditional economic theories assume rational behavior; however, modern business environments reveal persistent deviations influenced by cognitive biases, heuristics, and social preferences. This paper explores the role of behavioral economics in shaping modern business strategies, consumer behavior analysis, marketing, pricing decisions, and organizational management. Through theoretical analysis and practical case studies, it demonstrates how behavioral insights enhance business decision-making, improve customer engagement, and create competitive advantages. The study further highlights the integration of nudging techniques and behavioral interventions in managerial practices. Finally, the research underscores the future scope of behavioral economics in digital and global business contexts.

Keywords: Behavioral Economics, Decision-Making, Cognitive Biases, Consumer Behavior, Nudging, Business Strategy, Organizational Management