Production Theory Revisited: Aligning Output Decisions with Evolving Consumer Behaviour in the Digital Age

The digital age has unsettled the epistemological foundations of classical production theory. Traditionally conceived as a deterministic relationship between inputs and outputs, production has long been treated as a technical process governed by efficiency and equilibrium. Yet, the rise of algorithmic consumption, real-time data feedback, and behavioural personalisation has rendered this framework increasingly obsolete. This paper conceptually re-examines production theory through a behavioural and informational lens, proposing the notion of behavioural elasticity - the capacity of producers to interpret, predict, and adapt to evolving consumer behaviour within digital ecosystems. Drawing upon conceptual analysis and interdisciplinary insights from behavioural economics, digital sociology, and agricultural studies, the paper argues that production must be re-theorised as a dynamic, reflexive process of co-creation between producers and consumers. Empirical illustrations from both developed and developing contexts - notably the digital transformation of agriculture in Nigeria and precision farming in the Netherlands - demonstrate how behavioural intelligence now functions as a compounding factor of production. The study advances three core arguments: first, that the production function must integrate behavioural intelligence (B) alongside labour, capital, and technology; second, that adaptive efficiency supersedes static optimisation as the dominant logic of competitiveness; and third, that ethical governance and inclusivity are essential to prevent behavioural responsiveness from devolving into surveillance capitalism. The paper concludes that the future of production theory lies in embracing reflexivity, complexity, and ethical adaptability as central tenets of economic thought in the digital era.