Exploring the Role of Behavioral Economics in Understanding Decision-Making Processes

Abstract

This paper aims to underscore the invaluable role of behavioral economics in elucidating the decision-making process. In order to comprehensively grasp the attitudes and mechanisms underlying decision-making, it becomes imperative to integrate subjective and psychological dimensions inherent in behavioral economics. Such integration redefines rational behavior beyond the confines of classical and neoclassical paradigms, opening new avenues of exploration. While this approach may challenge conventional economic development models, its consideration of multifaceted factors influencing individual decision-making promises a more nuanced understanding of economic phenomena and the discovery of viable solutions.