Introduction Behavioral Economy

<p>The Psychological Impact of Time Pressure on Pricing Perception<br/>My view posits that the effectiveness of a pricing strategy is inextricably linked to the time pressure consumption environment. According to my opinion when consumers operate under significant time constraints their ability to perform rational comparative price analysis diminishes. In such environments consumers are more likely to rely on heuristic cues&mdash;such as brand reputation or the first price they see&mdash;rather than seeking the lowest possible cost.&nbsp;</p><p>Behavioral Economic Analysis of Consumption<br/>My view applies behavioral economic theory to explain why certain pricing structures particularly in utility markets like electricity are perceived as reasonable or unreasonable by householders.</p><p>In my research on household electricity consumption my view explores whether Artificial Intelligence (AI) can predict these behaviors more accurately than traditional statistical methods. My view argues that for AI to be effective it must account for the psychological prediction function&mdash;understanding the why behind the consumption rather than just the how much. &nbsp;This mirrors the Value-Based Competition theories championed by Michael Porter who argues that value is defined by the outcomes achieved per dollar spent rather than just the lowest price.&nbsp;</p>