Behavioral behavior with the behavioral economic approach evaluation of cognitive prejudices in the context

When consumer behaviors are examined with the behavioral economics approach, the existence of psychological biases in decision-making processes is seen as a result of researches in this field. Contrary to the rationality advocated by traditional economics-based approaches and models, decision makers can exhibit irrational behavior by acting with their cognitive biases. With this approach, although the assumptions of Neo-classical Economics are not completely rejected, it emphasizes that cognitive biases should be taken into account. In this context, firstly, the concept of behavioral economics, the historical development process of behavioral economics and cognitive biases with the behavioral economics approach are included in the study. In the second part, consumption theories are handled first and then the relationship between consumer confidence and consumption expenditures is mentioned. Finally, in the methodology part of the research, a time series analysis was made and the cointegration relationship between the variables was revealed. As the data set, the GDP calculated by the quarterly chained volume method covering the period 2004Q1-2021Q3, and the consumption of resident households, consumer confidence index, consumer price index data were used. Income, consumer confidence index and consumer price index, where consumption expenditures are dependent variables, are added to the model as independent variables. The short- and long-run relationship was examined using the ARDL bounds test approach. In the conclusion part, the effect of consumer confidence on consumption expenditures from the perspective of behavioral economics approach is evaluated in the light of the findings obtained from the analysis. In addition, in line with the purpose of the study, the place of trust in consumers' expenditures has been emphasized.