Author(s): Samuel Okoro
Behavioral economics integrates psychological insights into economic and managerial decision-making, providing a deeper understanding of how cognitive biases, heuristics, and emotions shape business outcomes. Unlike traditional economic models that assume fully rational actors, behavioral economics recognizes that real-world decisions are influenced by systematic deviations from rationality. This article explores the application of behavioral economics in business strategy, marketing, finance, and human resource management. It also discusses challenges, including ethical considerations and cultural variability, and highlights practical approaches for leveraging behavioral insights to improve decision-making and organizational performance.