An Analysis of Market Price Justice in Monopoly and Monopolistic Market Structures: An Islamic Economic Review from the Perspectives of Ibn Taymiyyah and Al-Ghazali

Abstract

Price formation in monopoly and monopolistic competition raises concerns about market power, resource allocation, and consumer welfare. This study examined price justice in both market structures through the economic thought of Ibn Taymiyyah and Al-Ghazali, emphasizing implications for orderly market functioning. A descriptive qualitative library research approach used classical Islamic texts and contemporary scholarly literature. Materials were examined through document analysis, critical reading, conceptual categorization, theoretical source triangulation, and comparative deductive interpretation. Findings indicated that neither monopoly nor product differentiation inherently constituted injustice or market instability. Ethical concerns arose when hoarding, deception, collusion, or artificial scarcity distorted legitimate price formation and disadvantaged consumers. Ibn Taymiyyah's concept of thaman al-mithl emphasized equivalent value and exchange reflecting genuine supply and demand, whereas Al-Ghazali stressed responsible profit seeking and access to essential commodities. Regulatory intervention was justified when identifiable abuses undermined fairness, but ordinary market price increases did not independently warrant controls. Supervision through hisbah and consultative tas'ir provided normative principles for protecting consumers while recognizing legitimate production costs and seller interests. The study offers an integrated conceptual framework connecting price justice, market efficiency, and proportionate regulation without claiming empirical evidence of price stability, measured economic outcomes, or intervention effectiveness.