An Application of Game Theory in Islamic Economics
In the holy sharia of Islam, there are rules and regulations for all kinds of transactions. Some of transactions are forbidden. The rule of denial of Gharar is one of these forbidden transactions. According to this rule, all transactions, which face with risk resulting from ambiguity in the deal, am...
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2013-09-01
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| Series: | پژوهشهای اقتصادی |
| Subjects: | |
| Online Access: | http://ecor.modares.ac.ir/article-18-1402-en.pdf |
| _version_ | 1797803100647456768 |
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| author | Mansour Khalili Araghi Elham Nobahar Ameneh Ghaemi Dizaji |
| author_facet | Mansour Khalili Araghi Elham Nobahar Ameneh Ghaemi Dizaji |
| author_sort | Mansour Khalili Araghi |
| collection | DOAJ |
| description | In the holy sharia of Islam, there are rules and regulations for all kinds of transactions. Some of transactions are forbidden. The rule of denial of Gharar is one of these forbidden transactions. According to this rule, all transactions, which face with risk resulting from ambiguity in the deal, ambiguity in ability to give or receive goods or ambiguity in the essential characteristics of the deal, in such a way these terminate to loss are forbidden.
In this paper, the rule of denial of Gharar as one of main economic rules of Islam is examined using game theory technique. The main purpose of this paper is to show the futility reasons of Gharar deals in Islam. In this regard, a hypothetical Gharar transaction is modeled in the framework of game with asymmetric information, and its consequences for the society are investigated. The results show that disregarding this valuable Islamic rule imposes extra costs on society and decreases the social utility. It is demonstrated that if the problem of asymmetric information is resolved, the possibility of Gharar transactions will be reduced and the welfare of the society will be enhanced. |
| first_indexed | 2024-03-13T05:16:48Z |
| format | Article |
| id | doaj.art-0cb176a23cff4bbb95c65ac517f4d70e |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:16:48Z |
| publishDate | 2013-09-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-0cb176a23cff4bbb95c65ac517f4d70e2023-06-15T20:41:10ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322013-09-0113387108An Application of Game Theory in Islamic EconomicsMansour Khalili Araghi0Elham Nobahar1Ameneh Ghaemi Dizaji2 Professor of Economics, Faculty of Economics, University of Tehran PhD Candidate in Economics, Faculty of Economics, University of Tehran M. A. in Economics, Faculty of Economics, University of Tehran In the holy sharia of Islam, there are rules and regulations for all kinds of transactions. Some of transactions are forbidden. The rule of denial of Gharar is one of these forbidden transactions. According to this rule, all transactions, which face with risk resulting from ambiguity in the deal, ambiguity in ability to give or receive goods or ambiguity in the essential characteristics of the deal, in such a way these terminate to loss are forbidden. In this paper, the rule of denial of Gharar as one of main economic rules of Islam is examined using game theory technique. The main purpose of this paper is to show the futility reasons of Gharar deals in Islam. In this regard, a hypothetical Gharar transaction is modeled in the framework of game with asymmetric information, and its consequences for the society are investigated. The results show that disregarding this valuable Islamic rule imposes extra costs on society and decreases the social utility. It is demonstrated that if the problem of asymmetric information is resolved, the possibility of Gharar transactions will be reduced and the welfare of the society will be enhanced.http://ecor.modares.ac.ir/article-18-1402-en.pdfc70d82: islamic economicsghararasymmetric information jel classification: z12c70d82 |
| spellingShingle | Mansour Khalili Araghi Elham Nobahar Ameneh Ghaemi Dizaji An Application of Game Theory in Islamic Economics پژوهشهای اقتصادی c70 d82 : islamic economics gharar asymmetric information jel classification: z12 c70 d82 |
| title | An Application of Game Theory in Islamic Economics |
| title_full | An Application of Game Theory in Islamic Economics |
| title_fullStr | An Application of Game Theory in Islamic Economics |
| title_full_unstemmed | An Application of Game Theory in Islamic Economics |
| title_short | An Application of Game Theory in Islamic Economics |
| title_sort | application of game theory in islamic economics |
| topic | c70 d82 : islamic economics gharar asymmetric information jel classification: z12 c70 d82 |
| url | http://ecor.modares.ac.ir/article-18-1402-en.pdf |
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