Islamic Behavioral Economics: Reconstructing Rationality Preferences Economic Decision Frameworks


Authors

(1) * Baidawi Arrohman   (Universitas Nurul Jadid, Indonesia)  
        Indonesia
(2)  Moh. Idil Ghufron   (Universitas Nurul Jadid, Indonesia)  
        Indonesia
(*) Corresponding Author

Abstract


Conventional economic rationality increasingly fails to explain decision-making shaped by ethical and behavioral considerations in contemporary economic environments. This study aims to reconstruct economic rationality through an Islamic Behavioral Economics framework integrating ethical values, behavioral biases, and institutional governance. A qualitative case study was conducted involving twenty-four purposively selected informants comprising Islamic economics academics, Islamic banking practitioners, halal MSME owners, and policymakers, with data collected through interviews, observations, and document analysis and analyzed using the Miles, Huberman, and Saldaña interactive model. The findings reveal that Islamic ethical values shape rational preferences, behavioral biases influence practical decisions, and integrated institutional governance strengthens sustainable economic rationality. This study contributes an original multidimensional framework extending Islamic Behavioral Economics beyond conventional utility maximization while providing practical guidance for governance, policymaking, and future empirical model development.



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