Author(s): Ana Ruiz
Behavioral economics has significantly influenced business decision-making by integrating psychological insights into economic models. Unlike traditional economic theories that assume rational decision-making, behavioral economics acknowledges cognitive biases, heuristics, and emotional influences that shape consumer and organizational choices. This article explores key behavioral economic principles, including loss aversion, anchoring, overconfidence, and social proof, and their impact on marketing, workplace productivity, and financial decisions. Additionally, it highlights strategies businesses can adopt to leverage behavioral insights for sustainable growth, enhanced customer engagement, and optimized decision-making. By understanding human behavior, businesses can create effective pricing strategies, personalized experiences, and data-driven approaches that improve long-term success.