Behavioral Economics in The Era of Digital Subscriptions: Choice or Manipulation

Abstract

The current research paper explores the relationship between behavioral economics and the practices used in the current economic environment in which a large part of consumption is done through digital subscriptions, identifying whether they represent genuine consumers’ choice or can be considered a form of manipulation.  In the current context of accelerated digitalization, subscriptions for services such as streaming platforms, software applications, and educational portals, have become ubiquitous, determined and supported by sophisticated marketing strategies and data-based algorithms. At the same time, the study highlights how the design based on choice architecture and the use of AI do both contribute to the personalization of the user experience and the exploitation of cognitive vulnerabilitites. Based on a bibliometric analysis, the research identifies the connections between consumers behaviour and business models based on digital subscriptions. The study highlights the importance of personalized offers and choice architecture in influencing consumer decisions, often to teir detriment. At the same time, the paper exploers the possibility of non-ethical practices of digital subscription based business models in manipulating consumers’ choices and behavior. The results can sustain that the economic succes of business models based on digital subscriptions depends strongly on the equilibrium between satisfying consumer needs and generating a stable profit for supplers. Hence, the research contributes to the scientific literature by providing an understanding of how digitalization is transforming consumers’ choices and offers insights into the responsability of those business models to always call for good practices.