Hazik Mohamed, Abbas Mirakhor, Nuri Erbas Belief and Rule Compliance

Annotation

Belief and Rule Compliance: An Experimental Comparison of Muslim and Non-Muslim Economic Behavior uses modern behavioral science and game theory to examine the behavior and compliance of Muslim populations to Islamic Finance laws and norms. The work identifies behaviors characterized by unexpected complexity and profound divergence, including expectations for sharing, cooperation and entrepreneurship gleaned from studies. Adopting a unique set of recent empirical observations, the work provides a reliable behavioral foundation for practitioners seeking to evaluate, create and market Islamic financial products. Covers the economic behavior of Muslims and non-Muslims Indicates when, and if, economic behavior confirms/opposes rational self-interest assumptions Links rule compliance with risk sharing concepts in Islamic Finance Applies game theory to understand behavioral rules compliance regarding Islamic Finance laws Explores behavioral implications for creating and marketing new financial products