Islamic Economics Studies Bi-quarterly Journal

Investigating The Role and Effects of Market Design Theory In Economic Governance with Islamic Approach

Document Type : Research Paper

Authors

1 Assistant Professor, Faculty of Economic Sciences and Management, Department of Islamic Economics, University of Qom, Qom, Iran.

2 PhD student in Islamic Economics, Faculty of Economic Sciences and Management, Department of Islamic Economics, University of Qom, Qom, Iran.

3 M.Sc. student in Public Administration, Faculty of Islamic Studies and Management, Department of Public Administration, Imam Sadiq University, Tehran, Iran.

10.30497/ies.2023.244353.2144

Abstract

According to market design theory, every market needs regularity and regulation. Influential levers in the market include pricing, limiting, motivating, thickening, congestion removal, and clearing levers. In a parallel Islamic approach based on Shahid Sadr thoughts, it is of Fiqh or Islamic Jurisprudence to determine and regulate economic framework of the markets. In other words, Fiqh has the responsibility of just and fair allocation and distribution of goods among all the people in the Islamic society. Through this task, Islamic thoughts are weaved through social instructions and so we can expect the realization of shariah goals in the economy. Thus, we can see that Islamic Jurisprudence is a kind of market design based on shariah teachings. Investigating this conceptual relationship, we are aimed in this article to extract the implications of market design theory using Islamic approach. Based on the results of this research, economic governance based on Islamic rules in each of four sectors of government, public, cooperative and private sector depends on creating motivation, increasing thickness, removing congestion and safety in the logic of jurisprudential exchanges. To sort out and link different economic sectors and increase coordination and coherence, increase the thickness of the market and reduce congestion, it is necessary to conduct interactions based on fair behavior, anti-monopoly and anti-hoarding, as well as adherence to Islamic rules.

Keywords

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Islamic Economics Studies Bi-quarterly Journal
Volume 15, Issue 1 - Serial Number 29
September 2023
Pages 285-320