HOW PSYCHOLOGICAL FACTORS INFLUENCE ECONOMIC DECISION-MAKING, AND THE IMPLICATIONS FOR POLICY

Mudasir Ahmad Sofi; Irshad Ahmad Reshi; Dr. T. Sudha

doi:10.54443/jaruda.v1i4.57

Authors

Mudasir Ahmad Sofi Special Educator, Rehabilitation therapist, Psychologist
Irshad Ahmad Reshi Research Scholar Department of Economics Annamalai University Tamil Nadu
Dr. T. Sudha Associate Professor, Department of Economics Annamalai Uiversity Tamil Nadu

DOI:

https://doi.org/10.54443/jaruda.v1i4.57

Keywords:

Keywords: Psychological factors, Economic decision-making, Policy implications

Abstract

Economic decision-making is often thought to be a purely rational process, with individuals making choices based on a careful analysis of costs and benefits. However, research has shown that psychological factors play a crucial role in shaping economic decisions. This paper reviews the literature on how psychological factors such as cognitive biases, emotions, and social influences influence economic decision-making. We also discuss the implications of these findings for policy-makers, highlighting the need for policies that take into account the role of psychological factors in shaping economic behavior.

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