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

Authors : Rajeev Khatri, Dhiraj Verma

Abstract : Behavioral economics explores the intersection of psychology and economics, focusing on how individuals make decisions in uncertain and complex environments. This paper delves into how these insights influence corporate strategies by addressing decision-making biases, heuristics, and the role of emotions in business decisions. The integration of behavioral economics into corporate strategy development has profound implications for understanding consumer behavior, pricing models, risk management, and employee motivation. By examining the key principles of behavioral economics, this paper aims to highlight how companies can harness these insights to optimize decision-making, enhance competitive advantage, and improve long-term sustainability.

Keywords : Behavioral Economics, Decision-Making, Corporate Strategy, Consumer Behavior, Heuristics, Risk Management, Employee Motivation, Pricing Models, Biases, Organizational Behavior