Volume 19, Issue 4 (12-2024)
J. Mon. Ec. 2024, 19(4): 453-476 |
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Mohammadbeigi S. Command Pricing in Islamic Economics: A Comparative Analysis of Jurisprudential Foundations and Contemporary Market Challenges. J. Mon. Ec. 2024; 19 (4) : 2
URL: http://jme.mbri.ac.ir/article-1-685-en.html
URL: http://jme.mbri.ac.ir/article-1-685-en.html
PhD student in Islamic Economic Philosophy, Imam Khomeini Educational and Research Institute, Qom, Iran
Abstract: (1405 Views)
This study examines the tension between the jurisprudential foundations of command pricing and its efficacy in contemporary Islamic economies. Using mixed methods—including fatwa analysis, econometric modeling, and case studies from Iran and Indonesia—the findings reveal that while command pricing is justified during crises (e.g., sanctions or severe shortages) based on public welfare (maslahah), its prolonged implementation without adherence to Sharia principles leads to adverse outcomes such as smuggling, administrative corruption, and reduced social welfare. An analysis of 50 fatwas from Iran, Indonesia, and Saudi Arabia highlights jurisprudential divergence: 73% of Iranian scholars permit command pricing during crises, while 62% of Saudi scholars reject it, citing the sanctity of ownership rights (tamlik). Econometric modeling (using panel data from 2010–2022) shows a negative correlation between price controls and the Human Development Index (𝛾₁ = -0.12) and a positive correlation between Sharia-compliant governance and welfare (𝛾₂ = 0.34). The proposed Sharia-Compliant Price Regulation (SCPR) framework, integrating maslahah and market efficiency indices, provides policymakers with a quantitative tool for balancing ethical and economic priorities. Case studies illustrate Indonesia’s success in reducing rural poverty by 15% through consultative (shura) and transparent policies, while Iran’s experience (40% fuel smuggling rate) underscores the risks of politicized interventions lacking jurisprudential rigor. The study concludes that Islamic economies can achieve both justice (adl) and market efficiency by adopting tiered, dynamic, and Sharia-compliant pricing policies.
Article number: 2
Type of Study: Original Research - Case Study |
Subject:
Monetary Economics
Received: 15 Mar 2025 | Accepted: 21 Jul 2025 | Published: 6 Aug 2025
Received: 15 Mar 2025 | Accepted: 21 Jul 2025 | Published: 6 Aug 2025
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