The nature and relevance of the retail sector cannot be questioned as far as economic growth of a nation is concerned. It is important to acknowledge the fact that the economics of retailing and distribution is still facing a deficiency in the number of references to draw its theoretical basis and explanation to its major drawbacks. The number of challenges facing the retailing industry still lack sufficient remedies because of the little research being conducted by economists in this field. The solutions to the major problems have been left on the hands of marketing professionals who find it difficult to come up with elaborate econometric models to explain the underlying challenges in this sector. Retailing and distribution are directly linked. In the modern market, holding some aspects of perfect market constant, still there are imperfections that must be addressed to give equal opportunity to all stakeholders. The classical economics has failed to give an explanation for the property right hence the need to adopt a mechanism for this. The role of retail and distribution is evident given the number of jobs it has help create globally. Equipping learners with sufficient knowledge of the retail and distribution industry is the epicenter of the literature coverage in this book. The writing of this book is based on the major economic principles. The major economic methodologies and literature has been put into use in the book making them relevant in giving explanations to a vast number of issues in retailing and distribution. The economic role of retail and distribution has not been ignored in the material context as the studies and research done on the field have been employed in the book. An attempt has been made to handle individual topics in the book independently and in an ascending order; from simple to complex, giving the learner a friendly and convenient approaches to the major content in the book. The main purpose of this book is to highlight the existing segments in the retail industry and provide explanations to some of the niches. It aims at providing space for future extensions for integrating the recommendations form scholarly findings relevant in retail and marketing economics.

There is an underlying assumption in the neoclassical economics that the expected utility function can be used to give explanations to the consumer behavior. However, to many of us, it may be difficult to comprehend just how possible it is to measure our actions and make decisions based on the utility approach that is discussed by economists. In line with the desire to come up with the best strategy and models to offer solutions to the menace, it was universally agreed that there is need to establish a discipline that would incorporate the attributes of psychology, cognitive science and economics. The relevant discipline in this case would be termed `'Behavioral Economics". The main idea behind the formulation of this book is to help learners in the field of psychology and economics to understand the existing mutual relationship between the two disciplines. Various attributes of human behavior are discussed in this book. For instance mental accounting, as discussed elaborately in the book can be of great impact in getting to know why consumers are generally loss averse. Ideally, most economic choices are made based on individual emotions, a concept that is greatly disposed by the neoclassical economists. The role of emotions in decision making as portrayed in this book cannot be ignored. The application of behavioral economics in the modern world is evident, from marketing, clinical psychology, planning, insurance and banking. In line with the relevance of the discipline, this book tries to explore the various principles of behavioral economics and brings them to light by showing how applicable they are in modern policy making. It is with great appreciation and acknowledgement that the work done by economic proponents such as the Nobel laureate Daniel Kahneman has been very fundamental in making illustrations to most part of the literature coverage in this book. In addition, the vast empirical evidence and findings from various social scientists have confirmed the relevance of various principles covered in this book. It should be noted that the discipline of behavioral economics is important in the process of making decisions that are likely to impact on the economic growth of various states. In line with this, the book not only passes the test of significance but also remains at par with the existing need to impact knowledge to learners.