Book Title: Transformative Approaches in Multidisciplinary Research (TAMR)
Chief Editors: Dr. Meenakshi Kujur, and Dr. Hamidun Bunawan
Associate Editors: Mr. Gunjit Singhal, and Dr. Asma Farooque
Co-Editors: Dr. Suresh Kamarapu, and Dr. Souvik Sur
Chapter: 19
DOI: https://doi.org/10.59646/672/19
Authors: Mr. Laukik Alhat, and Ms. Madhavi Chinchwade
Abstract
Behavioral economics provides a more realistic explanation of how individuals make decisions by recognizing that human choices are not always perfectly rational. Instead of relying solely on logic, people often use mental shortcuts that can lead to consistent patterns of error, commonly referred to as cognitive biases. This research explores how such biases influence consumer behavior in different areas such as online platforms, organizational environments, cybersecurity, financial markets, and software development. It highlights key biases including loss aversion, social influence, and attention bias, and examines their impact on decision outcomes. The study also discusses modern techniques used to identify and reduce these biases, including algorithm-based tools and improved system design. Understanding these behavioral patterns can help organizations design better systems and enable individuals to make more informed decisions.
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