Governance of Behavioral Nudging

In the name of Allah, the Most Merciful, the Most Compassionate. Praise be to Allah, Lord of the Worlds, and peace and blessings be upon the Messenger of Allah and the Seal of the Prophets.

Behavioral nudging refers to guiding the choices and decisions of a targeted individual so that they fall into the path desired by the influencer. Nudging is not something alien to human social interaction. The famous poetic verse of Miskeen al-Darimi about the beautiful woman and her black veil is not foreign to the literature of consumer habits nor to commercial traditions. That verse and its story offer one of the clearest and most elegant depictions of what we are addressing here. For my part, I will practice a form of behavioral nudging on the curiosity of readers unfamiliar with that verse and its background, nudging them to seek it out themselves.

The Novelty of Behavioral Nudging

Regardless of the recent spread of the term, its essence has long been present and widely practiced. Merchants, producers, and financiers—past and present—all resort to nudging or behavioral inducement to achieve their goals. What is new about behavioral nudging lies in two aspects:

The employment of findings from behavioral sciences—psychology, sociology, and even neuroscience—to serve the purposes of nudging.

The realization by modern public administrations of the importance of tools based on behavioral economics, either as alternatives or complements to authoritative methods. With globalization diminishing the visible role of executive power in economic life, governments increasingly rely on such approaches to achieve their objectives and pass their policies.

Tell Me Who Nudges, and I’ll Tell You What They Want

Some might assume that all behavioral nudging corrects people’s negative behaviors and enhances social welfare. This is an illusion. We must differentiate between types of nudges depending on who applies them, for every nudge inevitably reflects the nudger’s interest.

The producer and merchant nudge consumers toward buying their products, increasing sales, and building loyalty to the brand or store.

The financier nudges clients toward accepting financing offers, using their services, and repaying debts more smoothly.

Any theory that suggests otherwise does not reflect reality. Thus, it is inaccurate to portray behavioral nudging as purely benevolent or universally aimed at the welfare of the targeted individuals.

The Collision of Nudges

Parents, doctors, and health or educational institutions nudge children toward healthier consumption habits and diets that build strong bodies and sustain well-being.

In contrast, vendors and producers nudge children through street music, flashy ads for chips, fast food, and soda—luring them in the opposite direction.

Tobacco companies, drug dealers, video game makers, and similar industries nudge youth toward consuming their products, building psychological loyalty, habit, and addiction. At the same time, families, health institutions, schools, security agencies, and consumer protection groups struggle to immunize youth against such nudges.

Media, counter-media, and competing media all nudge audiences—whether by persuasion or provocation—to implant and normalize the sender’s message in public consciousness.

Political parties and their candidates nudge voters to secure their votes. Campaigns aim at objectivity but often descend into accusations, smear tactics, and ethical disputes—as recent democratic events in supposedly exemplary states have shown.

Charitable organizations also practice nudging, persuading the public to adopt their values and donate to their causes.

Thus, recognizing the role of behavioral economics and spreading its culture does not automatically guarantee welfare. Positive nudges always face negative ones. The human soul and Satan have long been aligned in one camp, and the prophetic advice remains: “Oppose the soul and Satan, disobey them; and if they ever advise you sincerely, then doubt them!”

What is truly needed is not the blind promotion of behavioral nudging, but its governance—wise oversight that protects society from the relentless manipulations targeting the human mind, soul, and social fabric, ultimately aiming to exploit people’s wealth.

Public Administration and Behavioral Nudging

Historically, governments have always sought compliant citizens who fulfill obligations like military service and taxes without delay. Today, governments still seek compliance, alongside other ministry-specific objectives:

Ministries of education want certain behaviors from teachers and students.

Ministries of health want compliance from staff and the public.

And so forth. Previously, coercive administrative tools were the main instruments of executive power. The novelty today is that governments have realized that complementing authority with behavioral nudges allows them to set aside the whip and engage citizens in seemingly cordial dialogue.

Soviet economic administration offers a telling example of oscillating between coercive tools and moral incentives before settling on material incentives—ideologically hollow yet practically effective.

Behavioral nudging in governance is not new enough to be attributed to Thaler or others, as much contemporary literature suggests. Throughout history, rulers relied on advisors—poets, sages, preachers, and ministers—who nudged public behavior and often made the ruler’s scepter unnecessary.

The Islamic Economic School is Behavioral

Islamic economic thought is normative and behavioral by nature. It consistently pushes believers toward the most upright choices (“to that which is most sound”). Muslims reaffirm their need for guidance in every prayer. Islam is realistic: it recognizes human imperfection—“Every son of Adam errs, and the best of those who err are those who repent”—but it demands constant striving toward maturity.

Thus, the entire Islamic economic framework is a positive and impartial behavioral intervention, free from cognitive or emotional biases, because it originates from the All-Knowing, the Most Just. Alongside this divine guidance, Islamic legal policy prescribes additional behavioral interventions as needed, grounded in wisdom and aimed at public interest.

Legal Rulings and Behavioral Nudging

Legal rulings (ahkam taklifiyya) declare the divine stance toward human actions. These are not nudges per se, but jurisprudential determinations grounded in evidence and reasoning. Yet Islamic legislation does not present rulings as cold, lifeless commands, as positive law often does. Rather, it surrounds them with psychological and emotional framing that prepares believers to accept and internalize them.

For example, the prohibition of usury (riba) is not conveyed merely as “forbidden.” The Qur’an surrounds it with stark imagery: the usurer bloated and unable to stand, staggering like the possessed, swimming in a sea of blood. Such depictions act as nudges—emotional reinforcements—deterring believers from engaging in usury.

On the positive side, the command to give charity is framed with imagery: a seed growing into seven ears of corn, a foal raised for the donor, or even a reciprocal trade with God (“Who will lend to Allah a goodly loan?”). These images encourage believers to embrace giving.

Thus, beyond direct rulings, Islam activates the psychological and emotional dimensions of human nature, reinforcing good actions and deterring prohibitions.

Beyond Economics: Metabehavioral Considerations

Behavioral economists often critique the “rationality assumption” to justify nudging. But this is only partially valid. As we noted earlier, the effect of a nudge depends entirely on who delivers it and with what aim.

Some scholars of Islamic economics have suggested moving from the “Muslim man assumption,” posed against the “rational man assumption,” toward an “ordinary man assumption.” Yet theoretical debates around rationality, utility maximization, and economic self-interest often overlap and become confused.

Ultimately, deviations from sound behavior arise from:

Cognitive or informational deficiencies, correctable through education.

Pursuit of short-term pleasures at the expense of greater goods, addressable through reminders and guidance.

More dangerous self-centered biases, represented in archetypes:

The Iblisian: “I am better than him.”

The Pharaonic: “Is not the kingdom of Egypt mine?”

The Qarunic: “I was given it because of knowledge I possess.”

Correcting these requires not only education but also spiritual purification and vigilance against egoistic distortions.

Exalted is your Lord, the Lord of Might, above what they ascribe. Peace be upon the messengers, and praise be to Allah, Lord of the Worlds.

Abduljabbar Al-Sabhany
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