THE THEORY OF THE COST OF THE DEAL / CONTRACT BETWEEN INSTITUTIONAL THOUGHT AND ISLAMIC ECONOMICS

Abstract

Western economic thought is concerned with explaining economic phenomena through economic theories. Institutional thought is considered the most recent economic school that emerged in the middle of the twentieth century as a form of social and economic reform in support of the market mechanism by preserving the behavior of enterprises based on their performance on the prevailing business environment. And moving away from this approach will generate what is known as the cost of the deal or contract affecting the volume of economic activity and operations. The exchange. The current study was concerned with introducing both the institutional and Islamic economic thought for this phenomenon, and it was found that the loss of information and its lack of availability to the parties to deal in the market will result in what is known as the cost of the deal, just as economic thought has dealt with this phenomenon with its usual idealism, not only caters the factors causing it, but clarifying how to maintain the effectiveness and efficiency. Market