Navigating Preference-Based Choice in Individual Economic Behavior: A Comparative Analysis of Islamic and Conventional Perspectives

Abstract

In contemporary economic theory, individual choice is central to understanding market behavior. Preference-based choice forms the cornerstone of microeconomic analysis, illustrating how individuals prioritize alternatives under conditions of scarcity. While conventional economics typically assumes rational preferences driven by utility maximization, Islamic economic thought introduces a normative framework grounded in al-maṣlaḥah (public interest) and divine guidance, emphasizing moral, spiritual, and social considerations. This study aims to critically examine how preference-based choice is conceptualized and applied within both conventional and Islamic economic paradigms. It seeks to highlight key similarities, divergences, and potential integrations that can inform more holistic economic modeling. Central to this analysis is the exploration of behavioral assumptions, value orientations, and ethical dimensions underpinning individual decision-making in both frameworks. The methodology employed is qualitative and interpretive, relying on textual data derived from classical Islamic jurisprudence (fiqh), contemporary Islamic economic literature, and modern behavioral economics. The analysis identifies three core thematic domains: rationality and utility, the role of ethics in preferences, and the impact of religiously-informed decision constraints. Findings reveal that Islamic economics challenges the assumption of pure self-interest, advocating for a harmonization between personal benefit and societal welfare. The study contributes to broader debates on behavioral economics by offering a faith-based normative lens. It also opens a path for further inter-disciplinary research that bridges Islamic jurisprudence with contemporary behavioral models, enriching our understanding of human choice in diverse socio-economic contexts.