INTERNATIONAL JOURNAL OF FINANCIAL ECONOMICS (IJEFE)
Vol. 1 No. 9 (2025): INTERNATIONAL JOURNAL OF FINANCIAL ECONOMICS (IJEFE)

BEHAVIORAL ECONOMICS AND ECONOMIC COMMUNICATION: ANALYZING THE IMPACT OF COGNITIVE BIASES ON DECISION-MAKING

Kosasih Kosasih (Universitas Sangga Buana, Bandung, Indonesia)
Pandu Lesmana (Universitas Sangga Buana, Bandung, Indonesia)
Loso Judijanto (IPOSS Jakarta, Indonesia)
Myra Cahyati (Universitas Sangga Buana, Bandung, Indonesia)
Iyad Abdallah Al- Shreifeen (Taibah University, Saudi Arabia)



Article Info

Publish Date
17 Feb 2026

Abstract

Behavioral economics, a dynamic field at the intersection of psychology and economics, recognizes that human decision-making is far from the rational, utility- maximizing model traditionally assumed in economic theory. This study delves into the profound implications of cognitive biases on decision-making and explores how effective economic communication can mitigate their effects. Key findings reveal the prevalence of cognitive biases, including confirmation bias, anchoring, and loss aversion, impacting a majority of decision-makers. These biases significantly affect personal finance, investment, and public policy choices. Effective communication strategies, message framing, and behavioral insights are pivotal in countering these biases and improving decision quality. Armed with an understanding of cognitive biases, economic experts and policymakers can tailor communication and policy design to promote rational choices. The study also identifies challenges and future directions, emphasizing the ongoing need for research and innovative strategies. In conclusion, this research sheds Light on the interplay between cognitive biases, economic communication, and decision-making, offering insights into strategies for enhancing economic well-being and promoting informed choices.

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Journal Info

Abbrev

IJEFE

Publisher

Subject

Economics, Econometrics & Finance

Description

INTERNATIONAL JOURNAL OF FINANCIAL ECONOMICS (IJEFE) is a scientific journal that publishes articles in the field of Business and finance that contain conceptual ideas in the fields of Economics, Accounting, Management, Business and finance. The scope is Human Resource Management, Marketing ...