The Impact of Behavioral Economics on Consumer Decision-Making in the Digital Era

Abstract

With the rapid development of digital technologies, the consumer decision-making process has undergone significant changes in the digital environment. This paper, from the perspective of behavioral economics, explores the irrational characteristics of consumer decision-making in the digital era and the underlying psychological mechanisms. The study shows that digital technologies such as information overload, personalized recommendations, social media group effects, and digital payments not only profoundly influence consumer choices but also exacerbate the manifestation of behavioral economic phenomena such as bounded rationality and mental accounting. By analyzing key concepts in behavioral economics, such as reference dependence and loss aversion, the paper reveals how consumers make “good enough” decisions rather than optimal ones on digital platforms. Finally, the paper offers policy recommendations and practical insights aimed at providing theoretical support for the healthy development of digital marketing and the digital economy.