INDIVIDUAL BALANCE PREFERENCE THEORY: A BEHAVIORAL ECONOMICS APPROACH TO PRESTIGE BASED DECISION MAKING

This paper presents the Individual Balance Preference Theory (IBPT), an original theoretical framework that synthesizes James McGill Buchanan's Public Choice Theory with Alfred Adler's Individual Psychology to explain economic decision making processes. The theory posits that individuals economic decisions are shaped by the interaction of two fundamental prestige dimensions: Internal Prestige (self-respect and emotional responsibility toward loved ones) and External Prestige (material compensation and legal security). Based on simulation data (N=500), this study reveals that Internal Prestige exhibits a strong negative correlation with turnover intention (r =-0.55), while External Prestige shows a moderate negative correlation (r =-0.31). Furthermore, imbalance between prestige dimensions is found to be associated with psychosomatic symptoms. By arguing that prestigeseeking is an integral component of economic rationality, the theory makes significant contributions to behavioral economics, organizational behavior, and public policy. The study also proposes empirically testable hypotheses for future research.