The Optimization of a Muslim Consumer Behavior Using the Portfolio Constraint

The purpose of this paper is to survey of Muslim consumer behavior with respect to a given portfolio. In other words, in this paper, a set of specified assets with returns in certain state be considered as the individual's budget constraint. In this regard, factors affecting the portfolio selection by the individual in Islamic economics will be discussed. Also the subject of consumption in Islamic Economics is analyzed and finally the principal model of paper will be provided. For this purpose a Muslim, utility of consumption and the utility of Infaq in the current period and future (future periods discounted with the rate of time preference) and maximize with respect of his portfolio. Finally will be specified that the value of Asset in certain state with marginal utility of Infaq and consumption in current time have inverse relationship and marginal utility of Infaq and consumption in future time, time preference of investor – consumer and the probability of a given situation related to a specific asset have a direct relationship. It also use of this model can be derived the function of consumption and Infaq.