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Behavioral Economics in People Management: A Critical and Integrative Review.

Antonio M Espín1, Jesús M García-Martínez2

  • 1Department of Applied Economics, University of Granada, Campus de Cartuja S/N, 18071 Granada, Spain.

Behavioral Sciences (Basel, Switzerland)
|January 28, 2026
PubMed
Summary

Behavioral economics enhances people management by applying psychological insights to economic decisions. Understanding these principles deeply is key for effective, personalized HR strategies.

Keywords:
behavior changebehavioral incentiveseconomic gameshuman resourcesnudgesorganizational psychologypeople managementpreferences

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Area of Science:

  • Behavioral Economics
  • Human Resource Management
  • Organizational Behavior

Background:

  • Behavioral economics integrates psychological insights into economic decision-making.
  • It offers analytical clarity to traditional behavioral science domains.
  • Its application in people management is an emerging research area.

Purpose of the Study:

  • To explore the application of behavioral economics in people management.
  • To review findings and identify future research avenues.
  • To analyze five key domains: incentives, decision-making, leadership, personalization, and organizational change.

Main Methods:

  • Literature review of behavioral economics findings.
  • Integration of established concepts with HR practices.
  • Critical overview of applicability and future research directions.

Main Results:

  • Behavioral economics provides a powerful framework for people management.
  • Key domains like incentives and decision-making can be enhanced.
  • Personalized solutions are often more effective than generalized approaches.

Conclusions:

  • Behavioral economics offers significant potential for optimizing HR practices.
  • A deep, nuanced understanding of behavioral principles is crucial.
  • Future research should focus on developing personalized interventions.