Belief and Rule Compliance

Belief and Rule Compliance

An Experimental Comparison of Muslim and Non-Muslim Economic Behavior

1st Edition - September 20, 2018

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  • Authors: Hazik Mohamed, Abbas Mirakhor, Nuri Erbas
  • Paperback ISBN: 9780128138090
  • eBook ISBN: 9780128138137

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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.

Key Features

  • 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


Behaviorally-minded Islamic Finance specialists. Fund managers and financial product developers working with Islamic investments. Policymakers and regulators. Behavioral economists interested in exploring the impact of belief and religious-priming on economic behavior. Some graduate and 1st year PhD students in economics or behavioral economics

Table of Contents

  • 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

Product details

  • No. of pages: 233
  • Language: English
  • Copyright: © Academic Press 2018
  • Published: September 20, 2018
  • Imprint: Academic Press
  • Paperback ISBN: 9780128138090
  • eBook ISBN: 9780128138137

About the Authors

Hazik Mohamed

Hazik Mohamed is the Managing Director of Stellar Consulting Group Pte. Ltd. which is based in Singapore. Academically, his wide research interests include behavioral investigations into human decision-making using game theory via conventional and Islamic economics perspectives. Professionally, he is currently working on blockchain-based innovations and business growth strategies for start-ups. Hazik holds a Ph.D. in Islamic Finance from the International Centre for Education in Islamic Finance (INCEIF) in Malaysia as well as M.Sc. in Finance from Baruch College in New York and B.Sc. in Mechanical Engineering from the University of Arkansas, Fayetteville.

Affiliations and Expertise

Managing Director, Stellar Consulting Group Ltd, Singapore

Abbas Mirakhor

Abbas Mirakhor is the former holder of the First Chair of Islamic Finance at INCEIF in Malaysia, where he mentored and supervised 17 Ph.D. candidates, amongst other duties. He was formerly Dean of the Executive Board and retired as an Executive Director of the International Monetary Fund (IMF). He has held past professorships in Alabama A&M and Florida Institute of Technology. Mirakhor has published widely across microeconomic theory, mathematical economics and Islamic economics. He is the author, contributor and editor of numerous books, journals and articles, with much of those diverse research converging towards risk-sharing.

Affiliations and Expertise

Chair of Islamic Finance, International Centre for Education in Islamic Finance, Kuala Lumpur, Malaysia

Nuri Erbas

S. Nuri Erbaş was a Senior Economist at the IMF. He also held academic positions at the Universities of Hawaii, Houston, Maryland and INCEIF. His most recent research is on Saudi Arabia’s labor markets and decision-making in ambiguity. He holds a Ph.D. in Economics from Columbia University in New York and is the recipient of 1975 Rectorate Award from Boğaziçi University, Istanbul.

Affiliations and Expertise

Senior Economist, International Monetary Fund, Middle East and Central Asia Department, Washington DC, USA

Ratings and Reviews

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  • Paul Fri Sep 11 2020

    Unique Game Theory Approach

    I liked the use of known and lesser-known games from Game Theory to test for behaviors, which they use to differentiate responses between Muslims and non-Muslims. Very interesting study and outcomes.

  • Eliza Mon Jun 08 2020

    Interesting perspective

    I have not read an Islamic view on economics from a social experimentation perspective. The moral dilemma of the Sinking Ship stood out for me.

  • Raemi Mon Apr 13 2020

    Ground-breaking !

    The authors in this book has put forth a revolutionary perspective on behavioral influences on economics and finance with theological foundations. Testing for behaviors using popular game theory experiments anchor their findings adequately, as opposed to fancy theorizing and unvalidated concepts.