The Concept of Just Price in Islam: The Philosophy of Pricing and Reasons for Applying It in Islamic Market Operation

Abstract

Islamic Economics covers a large number of economic areas including the theory of pricing. This theory has been developed in conventional economics, while only a few are covered by Islamic economics. This paper aims to conceptualize the just price in Islam using the qualitative approach. It is exploratory research and content analysis; the analyzed data were obtained from various sources: Quran, Sunnah, Islamic philosophers, and jurisprudence. This paper reveals that a just price in Islam is based on the principles of ‘an taradhin minkum (mutual goodwill) and al’adl (justice) which must exist in goods and services pricing. These are also described in the principles of Islamic market operations which is to uphold justice and the willingness between the market players as well as to maintain the order of the supply and demand in the market.