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Arabian Journal of Business and Management Review

ISSN: 2223-5833

Open Access

Behavioral Economics: How Cognitive Biases Influence Business Decision-Making

Abstract

Liam Lilly*

Behavioral economics, an interdisciplinary field that merges psychology with traditional economic theory, has significantly transformed our understanding of how individuals and organizations make decisions. Unlike traditional economic models, which assume that people act rationally and in their best interests, behavioral economics acknowledges that cognitive biases and emotional factors often lead to irrational decisions. In business decision-making, these biases can manifest in numerous ways, influencing everything from investment choices to consumer behavior and strategic planning.

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Citations: 5479

Arabian Journal of Business and Management Review received 5479 citations as per Google Scholar report

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