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Islamic Finance


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Mustarsil


A buyer who does not haggle over the price (i.e., takes the price for granted). In general, a buyer acts in such a manner based on a specific trait in a seller such as trust, straightforwardness, reliability, etc. The mustarsil may also be a buyer who is unaware of the actual price of an item in a way that the seller exploits his lack of knowledge, i.e., information asymmetry, by increasing the price above the prevailing market price. The “unsuspecting” buyer will be willing to buy at a price quoted by the seller. In which case, the sale is said to be associated with al-ghubn (al-ghaban).

The mustarsil may also refer to an unknowledgeable farmer who brings his produce to the market and sells it at a price lower than the prevailing price. This sale involves information asymmetry which the seller, unaware of market conditions, is blamed for.


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