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A Note on Islamic Economics methodological progress in the field of behavioral and experimental economics could be helpful. Developments in the field of ‗bounded-rationality‘ would be worth studying to see if useful results could be obtained by extending the present understanding of this field in terms of cognitive constraints on rational behavior to constraints originating from the behavioral rules of Islam. Recent efforts to explain the wide income differentials among countries, or why some economies grow and others stagnate, have brought much attention to the role of institutions. In particular, two sets of institutions have been identified as crucially important: institutions that protect property rights and those that enforce contracts. New Institutional Economics—particularly as it is being extended to understanding ideology— seems to hold promises of fruitful investigation for Islamic economics since Islam is rules-based and the New Institutional Economics defines institutions in terms of rules and norms. Research work in this area could be extended to understand Islamic economic institutions and to analyze the extent or even existence of these institutions and their operation at the present in Muslim societies. To create an incentive structure for the establishment of new institutions compatible with Islamic objectives would be another fruitful line of inquiry. Developments in the field of contract theory seem to provide a fertile ground for investigation as the institution of contracts is of primary importance within the constellation of behavioral rules of Islam. A potentially useful area of inquiry is investigation of applicability of the concept of ‗incentive compatibility‘ in structuring contracts as well as organizing new Islamically-compatible institutions. Similarly, the closely related concepts of ‗trust‘, ‗commitment‘, and ‗reciprocity‘, which are being investigated in a variety of settings, could provide useful grounds for operationalizing the understanding of interpersonal relationships in Muslim societies which play a key role in the fostering of institutions. Information economics has yielded important results, applicable mainly to situations where there are limitations and constraints on the availability of information. While the findings of information economics have already played a useful role in Islamic finance, a more general application of these insights in other areas of Islamic economics would be no doubt productive. 20 14