Behavioural Economics and Decision Making in Business

Authors

Dr. Krishna Murari Modi, Dr. (Smt.) Anita Modi

Abstract

Behavioural economics integrates insights from psychology and economics to understand how individuals make decisions. This paper explores the applications of behavioural economics in business and policy, highlighting key concepts such as biases, heuristics, and decision-making processes. Drawing on seminal research by Kahneman and Tversky, as well as contemporary studies, the paper examines how behavioural economics principles inform pricing strategies, marketing tactics, and policy interventions. Case studies illustrate the effectiveness of behavioural insights in influencing consumer behaviour, increasing savings rates, and promoting environmental conservation. Additionally, the paper discusses future directions and challenges for the field, including the replication crisis and ethical considerations. By leveraging behavioural economics, businesses and policymakers can design more effective strategies to address complex societal issues and improve decision-making outcomes.

Keywords

Behavioural economics, decision-making, biases, heuristics, business strategy, policy making, pricing strategies, marketing tactics, case studies, future directions.

Behavioural Economics and Decision Making in Business. Dr. Krishna Murari Modi, Dr. (Smt.) Anita Modi. 2017. IJIRCT, Volume 3, Issue 6. Pages 80-88. https://www.ijirct.org/viewPaper.php?paperId=1706011