A Comparative Evaluation of Behavioral Economics Approaches to Consumer Decision-Making under Uncertainty

Abstract

This study presents a comparative evaluation of behavioral economics approaches in understanding consumer decision-making processes under uncertainty. As economic environments grow increasingly volatile, comprehending the psychological factors influencing consumer behavior becomes paramount. Employing a multi-methodological framework that integrates empirical analysis and theoretical modeling, our research delineates the effectiveness of various behavioral models—namely Prospect Theory and Nudge Theory—in predicting consumer responses to market fluctuations. The findings reveal significant disparities in predictive accuracy and practical applicability across the examined models, highlighting the necessity for tailored interventions in economic policy design. This research contributes to the ongoing discourse on enhancing economic resilience through informed consumer behavior strategies.