BEHAVIORAL INSIGHTS AND DIGITAL CHOICE DESIGN IN MODERN TRADE POLICY

Keywords: behavioral economics, choice design, nudge theory, digitalization of trade, trade policy, single digital window, behavioral insights, choice architecture, digital government, ethical risks of nudges

Abstract

The article examines the theoretical foundations and practical mechanisms of applying behavioral insights and digital choice design in contemporary trade policy. In the context of the fragmentation of the global trading system, the digitalization of public administration, and the growing role of non-tariff factors, the effectiveness of policy is determined not only by the normative content of agreements but also by the architecture of choice that influences the decisions of economic agents. Drawing on the theoretical contributions of Nobel laureates D. Kahneman, R. Thaler, and C. Sunstein, the study systematizes key instruments of choice design and establishes their connection with the psychological mechanisms of decision-making. The analysis demonstrates how these instruments reduce cognitive barriers, increase the uptake of trade preferences, and optimize interaction between business and the state. Particular attention is paid to digital transformation, including single digital windows, the redesign of customs interfaces, and personalized recommendations based on machine learning technologies. The empirical basis of the study consists of case studies from leading trade actors. In the European Union, the EU Single Window Environment for Customs project (Regulation (EU) 2022/2399) embodies the principles of choice architecture through data auto-completion, recommendations on tariff regimes, and the integration of non-customs formalities. In the United Kingdom, the Trade Remedies Authority and the Trade Remedies Service platform are oriented toward the needs of small businesses through step-by-step navigation, completion examples, and automated self-assessment tools. In Ukraine, the Diia ecosystem and Diia.Business demonstrate comprehensive integration of trade services, ensuring operational resilience even under martial law and receiving high international recognition. The article outlines the ethical risks associated with the use of behavioral tools and proposes principles for responsible implementation: transparency, preservation of freedom of choice, and accountability. It is proven that the systematic application of behavioral insights enables the enhancement of trade policy effectiveness without altering its normative content by optimizing the behavior of economic agents at all stages – from negotiations to implementation.

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Published
2026-09-02
How to Cite
Kostyk, Y. (2026). BEHAVIORAL INSIGHTS AND DIGITAL CHOICE DESIGN IN MODERN TRADE POLICY. Kyiv Economic Scientific Journal, (14), 101-109. https://doi.org/10.32782/2786-765X/2026-14-13
Section
SCIENTIFIC ARTICLES