"The Role of Behavioral Economics in Enhancing Public Trust Indicators and Sustainable Development in Iran"

Subject Areas : Sociology of Development

Ehsan Rahmani khalili ^{1 *} , Seyedeh Maliheh Hosseini ²

1 -
2 - Department of Sociology. Faculty of Social Sciences Communication and Media Islamic Azad University Central Tehran Branch

Received: 2025-05-22 Accepted : 2025-06-05 Published : 2025-04-20

Keywords: Behavioral Economics, Public Trust, Sustainable Development, Behavioral Nudges, Economic Governance,

Abstract :

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While classical economic theories are based on the assumption of rational and calculating individuals, real-world human behavior shows that people often make decisions under the influence of emotions, incomplete information, and limited self-control. Behavioral economics, as an interdisciplinary field combining insights from psychology, sociology, and cognitive sciences, seeks to analyze economic decision-making within a realistic and human-centered context. One of the most significant applications of this approach is its role in shaping and rebuilding public trust—a fundamental element for achieving sustainable economic and social development. In the context of contemporary Iran, where public trust has been eroded by various social and institutional challenges, understanding this connection becomes especially crucial. This study employs theoretical analysis and document-based research to explore how behavioral economics can help strengthen public trust and facilitate progress toward sustainable national development. The findings suggest that implementing behavioral policies—such as designing targeted nudges, improving choice architecture, and reducing cognitive biases—can guide citizens toward more beneficial decisions while enhancing their confidence in policymaking institutions. The paper concludes by proposing several practical recommendations for leveraging the potential of behavioral economics to improve economic governance, address social inequalities, and build social capital as foundational pillars for sustainable development.

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