A Comparative Analysis of Behavioral Economics Frameworks in Consumer Decision-Making

Abstract

In the realm of consumer decision-making, behavioral economics has emerged as a vital field that challenges traditional rational models. This study conducts a comparative analysis of three prominent behavioral frameworks—Prospect Theory, Cumulative Prospect Theory, and the Dual Process Model—assessing their applicability and effectiveness in explaining consumer choices. Utilizing empirical data from diverse market segments and employing rigorous econometric methods, the findings reveal significant variances in predictive accuracy and behavioral insights across the frameworks. The implications of this study not only enhance theoretical discourse but also offer practical guidance for policymakers and marketers aiming to understand and influence consumer behavior more effectively. Ultimately, this research contributes to the ongoing dialogue surrounding the efficacy of behavioral economic theories in real-world applications.