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

Authors: Dr. Neha Suryavanshi, Mr. Arvind Menon

ABSTRACT: Behavioral economics integrates insights from psychology and economics to explain why individuals and businesses often deviate from rational decision-making models. This paper explores the role of behavioral economics in influencing business decision-making processes. It highlights how cognitive biases, heuristics, and social influences affect managerial strategies, consumer behavior, and organizational outcomes. Furthermore, the paper emphasizes the importance of nudges, framing effects, and loss aversion in shaping sustainable business decisions. By combining theoretical insights with practical implications, the study underscores how firms can design better policies and strategies by understanding behavioral patterns in economic choices.

KEYWORDS: Behavioral Economics, Decision-Making, Cognitive Bias, Business Strategy, Nudges, Heuristics