Vol 4, No 3 (2021)

Behavioral Economics in Strategic Business Decision-Making

Authors: Dr. Ananya Roy, Mr. Devansh Patel

Abstract: Behavioral economics integrates psychological insights into economic decision-making, offering a deeper understanding of human behavior in business contexts. This paper explores the role of behavioral economics in strategic business decision-making, highlighting how cognitive biases, heuristics, and social influences shape managerial choices. It examines practical applications, economic implications, and strategic benefits of incorporating behavioral insights into business strategy. Challenges and frameworks for effective implementation are also discussed, emphasizing the importance of integrating human behavioral understanding into modern corporate decision-making.

Keywords: Behavioral Economics, Strategic Decision-Making, Cognitive Biases, Managerial Strategy, Business Psychology

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