The Relation between Postulations of Behavioral and Traditional Economics with Reference to Islamic Economics

Abstract

The study examines the main postulations of behavioral economics, which is based on the integration of psychological and neurological determinants in economics, in order to provide a better understanding of individuals' economic behaviors. These postulations attempt to make economics a human discipline, where there is a reference to the falsity of the postulations which say that economics is a neutral science and that it should be separated from ethics. The study focused on analyzing the nature of the link and relationship between behavioral economics and contemporary (traditional) economics, which represents a new branch of contemporary economics; but it is not a substitute for it. The study also assessed the level of similarity between behavioral economics and the method of analysis in Islamic economics. The study adopted the descriptive and analytical method. The findings revealed that there is a new bridge of communication between contemporary economics and Islamic economics, where the behavioral economics had a role in its construction. In many cases, this may seem to be one of the rules of economic behavior of individuals and the society.

Keywords: behavioral economics, postulations of behavioral economics, contemporary (traditional) economics, stimulation and motivation, individuals' economic rules.