Reassessing Behavioral Foundations: A Critical Reevaluation of Rational and Irrational Economic Agents in the Digital Economy

Abstract

The digital economy has catalyzed unprecedented shifts in consumer behavior, challenging established economic paradigms. This study employs a comprehensive methodological framework, integrating econometric modeling and behavioral analysis, to investigate the divergence between traditional rational agent models and the emergence of bounded rationality in digital marketplaces. Our findings reveal significant discrepancies in decision-making processes influenced by digital interfaces, leading to the proposal of a hybrid model that reconciles these two paradigms. By foregrounding the implications of our results for policy-making and market regulation, we contribute to a more nuanced understanding of economic behavior in a digitized context. This research underscores the necessity for adapting economic theories to better reflect contemporary realities, thereby paving the way for future inquiries into economic decision-making.