Article

Open Access

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Peer-reviewed

Behavioral Economics and Consumer Decision-Making in the Digital Age

Dr. R. Tamilarasi

DIP: 18.02.024/20251003

DOI: 10.25215/2455/1003024

Received: June 02, 2025; Revision Received: July 05, 2025; Accepted: July 06, 2025

Abstract

Behavioral economics has become increasingly relevant in understanding consumer decision-making, especially within the digital age where online platforms, algorithms, and real-time interactions heavily influence behavior. Unlike traditional economic models that assume rational decision-making, behavioral economics accounts for cognitive biases, heuristics, emotions, and social influences. In the digital environment, factors such as personalized content, targeted advertising, scarcity cues, and social proof significantly shape consumer preferences and purchasing behavior. The convergence of behavioral insights with digital technologies creates both opportunities and ethical challenges. For instance, digital nudging and choice architecture can guide users toward beneficial decisions, yet they can also be exploited to manipulate behavior. Moreover, mobile apps, AI-driven recommendations, and gamified interfaces leverage psychological triggers to enhance engagement and conversions. This paper explores how digital ecosystems amplify or mitigate behavioral tendencies and discusses implications for marketers, policymakers, and consumers. It highlights the importance of transparency, regulation, and consumer education to ensure ethical applications of behavioral economics in digital commerce.

The author(s) appreciates all those who participated in the study and helped to facilitate the research process.

The author(s) declared no conflict of interest.

This is an Open Access Research distributed under the terms of the Creative Commons Attribution License (www.creativecommons.org/licenses/by/2.0), which permits unrestricted use, distribution, and reproduction in any Medium, provided the original work is properly cited.

Responding Author Information

Tamilarasi R @ sruthi@paradoxpublications.com

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Article Overview

ISSN 2455-670X

DIP: 18.02.024/20251003

DOI: 10.25215/2455/1003024

Published in

Volume 10, Issue 3, July – September, 2025

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