Experimental Economics Application in Bank Resources Allocation: A Case Study of Islamic Banking Contracts

Experimental economics is a tool that can provide the necessary conditions for achieving reliable results in diverse fields of economic science, and using controlled tests, it can provide valuable, low-cost and reliable achievements for the optimal allocation of bank resources.
This article, in the part regarding experimental economics literature, adopts descriptive method and content analysis approach, and in the laboratory-related part, exploits experimental tests. It examines the hypothesis that "experimental economics, in the form of a set of experimental tests, can determine bank-profit maximizing combination of exchange and Musharakah contracts." The results show that considering borrowers, inflation and economic growth in the previous, present and future periods, banks can determine a combination that creates the most amount of profit in resource allocation.