chapter  8
17 Pages

Islam, the modern state and imperfect competition: to ban or to regulate?

Islamic economics requires a theory of imperfect competition. For this is the dominant form of industrial organization in the modern world. As shown in Part II, Islamic scholars in the past failed to proceed beyond the ideal of perfect competition. This intellectual failure does not, of course, alter the fact that coping with imperfect competition is a challenge facing the modern state.