Ethical Dimensions of Market Mechanisms: A Comparative Study of Conventional and Islamic Economics

Abstrak

This article presents a comparative analysis of market mechanisms in conventional and Islamic economic frameworks, examining their underlying principles, regulatory structures, and ethical implications. Using a qualitative, doctrinal approach grounded in authoritative academic sources, the study explores how each system defines price formation, market behavior, and regulation. While conventional economics emphasizes supply-demand dynamics and market equilibrium under rational self-interest, Islamic economics embeds economic activity within a divine ethical framework, guided by values such as ʿadl (justice), ḥisbah (market supervision), and the prohibition of ribā (usury). The findings highlight that Islamic market mechanisms offer a value-oriented model that addresses the limitations of conventional markets—particularly in terms of inequality, moral hazard, and social responsibility. Through institutions like zakāh, ḥisbah, and ethical trade rules, Islamic economics advances a holistic model integrating economic efficiency with moral accountability. The study contributes to theoretical discourse by proposing a structured comparative framework and offers practical pathways for ethical market governance. Implications include the potential for Islamic market principles to inspire new regulatory models in both Muslim-majority and pluralistic economic contexts.