Our intent in this paper was to provide experimental evidence for the Gift Exchange Mechanism in the context of charitable donations in Pakistan. We chose a simple and elegant experiment of Falk as the basis for our experiment. Due to institutional differences, we replaced his postal campaign...

Shahid Razzaque (2009) analyzes the effects of gender on the Ultimatum Game in Pakistan. A more detailed analysis of the data set reveals several additional insights that are not discussed in the original publication. While we confirm Rezzaque (2009) finding that cultural effects lead to...

An analysis of the ability of employers to provide care and attention as a way to motivate their employees is done. Workers not only compare their wages, as pointed out in previous literature, but also compare the socio-emotional resources provided by their employer. This provides important...

Researchers have established that gift exchange is an important explanation for efficiency wages. Since gift exchange is a culture dependent phenomenon, we sought to replicate these findings in Pakistan, to assess the prevalence of gift exchange mechanism. We chose to study gift exchange via a...

According to western views, wealth is unambiguously good, and so human welfare is positive when wealth is in excess of needs, and negative if it is less. Islam has a substantially more sophisticated view of the relation between wealth and welfare. Excess wealth is a trial, which can bring great...

Since the spirit of Islam is in stark and violent conflict with the spirit of Capitalism, the form taken by institutions designed to express this spirit must also be different. Capitalist financial institutions are designed to support the process of accumulation of wealth, which is at the heart...

The paper shows that fundamental Islamic principles regarding organisation of economic affairs are directly and strongly in conflict with teachings of conventional economic theories.