Behavioral Industrial Organization

Behavioral Industrial Organization is a field that examines how psychological factors and human behavior impact market structures and business practices. Unlike traditional industrial organization, which typically assumes that people act rationally and in their best interest, this approach acknowledges that consumers and companies often make decisions based on biases, emotions, and social influences. By using experiments and insights from behavioral economics, researchers study how these behaviors affect competition, pricing, and overall market dynamics, leading to a deeper understanding of economic phenomena and more effective business strategies.