Behavioral Economics and Consumer

How psychological, cognitive, and emotional factors shape economic decisions and consumer behavior.

Purpose and Direction

Vision

To be the global reference on the application of behavioral economics and consumer psychology, driving behavioral economics-driven innovation that benefits individuals, organizations, and society as a whole.

Mission

To leverage behavioral science insights to inform decision-making frameworks, product design, and marketing strategies, and apply behavioral economics principles to understand and influence consumer behavior, developing evidence-based strategies that promote healthy choices, sustainable consumption, and informed decision-making.

Focus areas

The questions and outcomes this division concentrates on, drawn directly from its vision and mission.

Consumer behavior

Applying behavioral economics to understand and influence consumer behavior.

Decision-making frameworks

Insights that inform decision-making frameworks, product design, and marketing strategies.

Healthy, sustainable choices

Evidence-based strategies that promote healthy choices and sustainable consumption.

Innovation with impact

Behavioral economics that benefits individuals, organizations, and society as a whole.

Research themes

Themes our contributors explore, summarized from the division's published articles.

Choice architecture and nudges

Because no way of presenting options is neutral, designers can use defaults, framing, and simplified choices to guide people toward better decisions while preserving freedom.

Cognitive biases in decisions

Mental shortcuts like anchoring on first numbers, status quo bias, and processing ease systematically skew judgments, often unconsciously, in negotiations, valuations, and change.

Sludge and procedural friction

Sludge is friction that makes worthwhile actions harder, taxing time and attention. Audits and a subtraction mindset help organizations remove needless barriers and reclaim productivity.

Social proof and digital influence

People copy what peers do, especially when uncertain. Likes, reviews, influencers, and visible norms drive consumer choices online and spread behaviors across teams and cultures.

Trust in digital commerce

Online buyers rely on security, reviews, vendor reputation, and processing ease to judge trust. A single weak link, like a breach, can override every other positive signal.

Fresh starts and charitable giving

Temporal landmarks like a new year or a Monday reset motivation and ease change. In giving, identifiable victims, concrete impact, and reduced friction overcome donor hesitation.