The relationship between behavioral economics and neoclassical economics: An evaluation in the context of consumer behaviour

That study aims to analyze behavioral economic theory through consumption decisions. Individuals' actions are evaluated within the framework of rational behaviors of people who pursue the self-interest impulse since the birth of economics. In this study, as liberal theory assumes, it will be questioned whether people behave rationally in all situations and whether the desire of self-interest drives their behavior. According to neoclassical economic theory, people behave rationally in all situations, and their behaviors are led by the desire of self-interest. On the other hand, behavioral economic theory initially objected to these assumptions on which neoclassical economics is based. In that perspective, behavioral economic theory has been seen as an alternative to neoclassical economic theory. However, behavioral economic theory later has served to strengthen the arguments of neoclassical economic theory rather than being an alternative to neoclassical economic theory, so behavioral economic theory has been transformed into a sub-field that provides the opportunity to identify the assumptions of neoclassical economic theory with reality. This thesis is to examine the theories of behavioral economic theory which affect the decision making process, and how the consumption preferences of individuals are manipulated. Behavioral economic approach affects the consumption decisions, and causes people to transform to the "homo economicus" human model which is assumed by neoclassical economic theory. Consequently, that helps the continuity of capitalism to ensure a continuous chain of consumption. So, in this study, it is emphasized that behavioral economics has a complementary and empowering structure rather than being an alternative to neoclassical economics based on individuals' consumption decisions. Therefore, we can say that behavioral economics is a subfield that neoclassical economics uses to realize its assumptions. In addition, this study aims to examine the historical and intellectual foundations of behavioral economic theory and to examine the transformation of behavioral economic theory. This study consists of four chapters; In the first part of the study, the theoretical and intellectual infrastructure of behavioral economics will be examined. After that, the concept of consumption and theories about consumption will be examined. In the third section, decision making tactics on how behavioral economics can steer individuals' decisions during the decision making phase will be discussed, and in the last section, whether behavioral economic theory used to manipulate consumer preferences is an alternative to neoclassical economic theory will be discussed.