Behavioural Economics in African Markets: Insights for Consumer Protection in Ghana 2005

Recent studies in behavioural economics have highlighted how individuals' decision-making processes can deviate from classical economic models, particularly in non-Western contexts like Africa. The research employs a mixed-methods approach, combining qualitative interviews with quantitative surveys to gather data from both urban and rural populations in Ghana. Data analysis includes thematic coding of interview transcripts and statistical testing of survey responses. A key finding is the prevalence of overconfidence bias among Ghanaians when making financial decisions, which often leads to excessive risk-taking in investment choices. Behavioural economics provides valuable insights into why traditional consumer protection measures may be insufficient and suggests that tailored interventions focusing on reducing cognitive biases could significantly improve outcomes for consumers. The study recommends the implementation of educational programmes aimed at fostering more rational financial decision-making among Ghanaians, with a particular focus on addressing overconfidence bias.