Belief and Rule Compliance: An Experimental Comparison of Muslim and Non-Muslim Economic Behavior

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-MuslimsIndicates when, and if, economic behavior confirms/opposes rational self-interest assumptionsLinks rule compliance with risk sharing concepts in Islamic FinanceApplies game theory to understand behavioral rules compliance regarding Islamic Finance lawsExplores behavioral implications for creating and marketing new financial products

1. Introduction 2. Rules of the Game 3. Game Theory and Human Behavior 4. Markets and Investment Behavior 5. Game Theory and Testing for Rule Compliance 6. Rule Compliance and Institutional Quality 7. Economic and Institutional Applications 8. Conclusion