JURNAL EKONOMI ISLAM JURNAL EKONOMI ISLA

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1 JURNAL EKONOMI ISLAM

JOURNAL OF ISLAMIC ECONOMICS

Bargaining Mechanism In Islamic Economy System

YUDISTIA TEGUH ALI FIKRI1

ABSTRAK

Bargaining is a bargaining position of goods or services. Bargaining should be done more than one person. So at least there are two people who transact (seller and buyer). If only one person certainly can not. The most common example of bargaining is in the market. In a sale and purchase, which has a higher bargaining rights is the buyer. While the seller will offset the buyer to happen a positive bargaining. Bidding is the goods or services offered at a certain amount and price level and under certain conditions. Islamic bidding also distinguishes it from conventional offerings, that the goods or services offered must be transparent and specified in the specifications, how the goods are, what are the advantages and disadvantages of the goods. Do not let our offer harm the requesting party. The Messenger of Allah in the bidding always specifies about the specifications of his wares, to the extent that his purchase price was mentioned and offered at what price the goods are purchased and which will be obtained by it.

A. INTRODUCTION

In the market economy system is a very important component to continue to run the wheels of the economy. Markets that bring together business actors (sellers) with buyers because of the interests and needs of each other (demand) then there is bargaining (bid). Where the demand and supply that triggered the transaction.

With the market then there will be a bargaining transaction, bargaining is a bargaining position of goods or services. Bargaining should be done more than one person. So at least there are two people who transact (seller and buyer). If only one person certainly can not. The most common example of bargaining is in the market. In a sale and purchase, which has a higher bargaining rights is the buyer. While the seller will offset the buyer to happen a positive bargaining.

In Islam a religion other than syumuliah (perfect) also harakiyah (dynamic). Called perfect because Islam is the perfect religion of previous religions and shari'a regulate all aspects of life, both of aqidah and muamalah. In the rule of muamalah, Islam regulates all forms of human

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behavior in dealing with each other to meet the needs of his life in the world. This includes the Islamic principles governing the market and its mechanism.

Therefore, in the economic system of Islam in practice must follow the rules that have been made based on the Qur'an and as-Sunnah. So I will try to study, about the bargaining mechanism in the Islamic economic system.

B. THEORETICAL STUDY

1. Islamic Economic System

According to Muhammad Abdul Manan Islamic economics is a social science which studies the economics problems of a people imbued with the values of Islam.2 Thus, according to Manan Islamic economics is a social science studying the economic issues of society inspired by Islamic values.

According to M. Umer Chapra Islamic economics was defined as the branch of the knowledge that it is possible to develop the macroeconomic and ecological imbalances. Thus, According to Chapra Islamic economics is a knowledge that helps the realization of human happiness through the allocation and distribution of limited resources that are in the corridor that refers to the teachings of Islam without providing individual freedom or without sustainable macroeconomic behavior and without environmental imbalances.3

According to Syed Nawab Haider Naqvi, Islamic economics, in short, is a study of the economic behavior of Muslim representatives in modern Muslim societies.4

The system is defined as an organization of various elements that are interconnected with one another. These elements also affect each other, and work together to achieve certain goals. With such an understanding, then we can mention that the economic system is a composed organization and parts that work together to achieve economic goals.5

Then what is the so-called Islamic economic system? Put simply we can say, Islamic economic system is an economic system based on Islamic teachings and values. The source of the whole value is certainly the

2

Muhammad Abdul Mannan, Islamic Economics, Theory and Practice, India: Idarah Adabiyah,, 1980, hlm. 3

3

Mustafa Edwin Nasution dkk, Pengenalan Eksklusif Ekonomi Islam, Jakarta: kencana, 2006, hlm. 16.

4

Syed Nawab Haider Naqvi, Menggagas Ilmu Ekonomi Islam, terj. M. Saiful Anam dan Muhammad Ufuqul Mubin, Yogyakarta: Pustaka Pelajar, 2009, hlm. 28.

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"Forbidden to you (eat) carcasses, blood, pork, (animal flesh) slaughtered in the name of other than God, the strangled, the smitten, the fallen, the gore, and tortured by the beasts, except those which you slaughtered, for you) slaughtered for idols. And (to be forbidden) to draw fate with arrows, (to draw fate with the arrow) is wickedness. On this day the unbelievers have been desperate to (defeat) your religion; therefore fear them not and fear Me. Today I have perfected your religion for you, and I have made you a favor, and I have accepted Islam to be a religion for you. And whosoever is obliged by hunger to sin, verily Allah is Oft-Forgiving, Most Merciful " (Surah Al-Maidah Verse 3)

Because it is based on Divine values, the Islamic economic system will of course be different from the capitalist economic system based on the doctrine of capitalism, and also different from the socialist economic system based on the doctrine of socialism. Indeed, in some ways, the Islamic economic system is a compromise between the two systems, but in many respects the Islamic economic system is completely different from both systems. The Islamic economic system has the good qualities of capitalism and socialism, but apart from its evil nature.6

There are several things that encourage the need to study the economic characteristics of Islam:

a. Straightening out the misconception that the capitalist economy (rewarding the principle of property rights) and the socialist (rewarding equality and justice) is not against Islamic economic methods.

b. Helping Muslim economists who have been engaged in conventional economic theory in understanding Islamic economics. c. Helping enthusiasts study fiqh muamalah in studying comparison

between Islamic economics with conventional economy.

While the source characteristic of Islamic Economics is Islam itself which includes three basic principles. All three in a basic and jointly set

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economic theory in Islam, namely the principle of aqidah, morality and legal principle (muamalah).7

Basically the Islamic economic system is different from the capitalist and socialist economic systems; and in some ways is a contradiction between the two and is between the two extremes. The Islamic economic system has the virtues that exist in the capitalist and socialist economic system, but is free from the weaknesses of both systems. The relationship between individuals in the Islamic economic system is sufficiently structured so that mutual assistance and cooperation take precedence over the competition and their fellow enemies. To this end, the Islamic economic system not only provides individuals with economic and social convenience and even provides them with certain moral and training education that makes them feel responsible for helping peers in achieving their desires or at least not hindering them in his efforts to live.8

Islam views the economic question not from a capitalist point of view that gives freedom and ownership rights to individuals and promotes individual effort. Neither from the communist point of view, who "wants to abolish all individual rights and make them like state-controlled economic slaves, but Islam justifies selfishness without letting it undermine society." The choice of self-serving attitudes among community members can be done through the procurement of morals and laws.On the one hand the understanding of economic concepts among societies is changed and improved through moral education and on the other hand, certain legal steps are taken to ensure that the selfishness of the capitalist class does not reach the stage that makes them greedy and greedy, and for the poor, no jealousy, vengeance and loss of tolerance.The most important part of those principles necessary for the economic organization in society to achieve the stated purpose is the right of individual ownership, which is necessary for k human progress is not only constantly maintained and preserved but continuously supported and strengthened.9

2. Bargaining Mechanism

Bargaining is a bargaining position of goods or services. Bargaining should be done more than one person. So at least there are two people who transact (seller and buyer). If only one person certainly can not. The most

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Nurul Huda dkk, Ekonomi Makro Islam, Jakarta: Prenada Media Group, 2008, hlm.2 8

Afzalur Rahman, Doktrin Ekonomi Islam, terj. Soerojo dan Nastangin, Jilid Ī Yogyakarta: Dana Bhakti Wakaf, 1995, hlm. 10

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common example of bargaining is in the market. In a sale and purchase, which has a higher bargaining rights is the buyer. While the seller will offset the buyer to happen a positive bargaining.

In the journal Peter C. Cramton Bargaining Mechanism is divided into 5 parts.10

a. Formulation

b. Perfect bargaining mechanisms

c. Efficiency

d. The case of uniform symmetric exchange: An example

e. Conclusion

Formulation of two parties, buyers and sellers, who bargain on the price of an object that can be produced by the seller at a cost of value b to the buyer. Seller's fees and buyer's valuation b are also called price reservations. Because they represent, each of the minimum and maximum prices on which each party will agree to trade. Both sellers and buyers have the right to suspend bargaining process. In particular, the value of future discount objects in accordance with the positive discount rate ῤ for sellers and buyers. Thus, a prize, if the bidder agrees the transaction at the price x discount on time t, which is x-se-pt for sellers and to be be-σt-x

for buyers. If it fails to reach an agreement, either the prize value is zero. Implied in this formulation is the assumption that future discount bidders are at the same rate, so that at any time t the discounted payout by the buyer equals the ticket income for the seller. Without this assumption, it is possible for players to achieve unlimited results by having players with lower discount rates lending a large arbitrary amount of money to other players.

The perfect bargaining mechanisms of the weakest terms will impose on the bargaining mechanism (T, x) in the form of a game is (1). The individual rationality, that is, everyone wants to play the game and (2). The incentive compensation, that is, the mechanism of induced delivery of the truth. Furthermore, when bidders can not make or commit commitments, one needs further restrictions of consecutive rationality, it does not have to be common knowledge that induced mechanisms over time are dominated by alternative mechanisms. Bargaining schemes that satisfy incentive compatibility, individual rationality, and sequential rationality are called the perfect bargaining mechanism.

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Jurnal Peter C. Cramton,” Squential Bargaining Mechanism” dalam

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Efficiency sets of perfect bargaining mechanisms are usually quite large, meaning that there are many broad game forms with equilibrium satisfying incentive compatibility, individual rationality, and sequential rationality. To narrow this set, it is reasonable to assume additional efficiency properties. There are three definitions of efficiency, described at length by Holmstrom and Myerson (1983), are ex-post, interim, and efficiency ex ante efficiency assumes that comparisons made before the game knows their imformation, while efficiency assumes that players only know their personal information , and ex post efficiency assumes that all information is known.

The case of uniform symmetric exchange: An example to illustrate the theories presented in the previous section will be useful for viewing examples. Particularly consider cases of uniform symmetric exchange where both sellers 'rights and buyers' rights are evenly distributed at (0,1).

and c(s,α) = (1 + α)s and d(b,α) =(1 + α)b –α which is strictly increased

when α = 1, and by theorem 3 we know that, for some α € (0,1) mecanism p=pα ex the desired efficient ante is found by setting R (α) to zero, so U (s) = V (b) = 0. Again it would be useful to consider two cases depending on

ῤ ≤ σ or ῤ > σ.

Conclusion Two important features of bargaining arrangement of each information and time, bidders usually have complete information about each other's freedom and therefore must communicate about some of their personal information, to determine whether or not there is a gain on the transaction. One means of communication for agents and signals of their personal information through the willingness to suspend the deal. Bidders anticipating large profits from a transaction will want to suspend the deal and will propose what is interesting from other transactions is the beginning of the process of accepting bargaining transactions. While bidders expect a small profit will prefer to wait for a better offer from their opponents.

C. CASE DESCRIPTION

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in the mother will continue to move the store until the price is considered fit with the desired.

D. DISCUSSION

1. Ethics Bargaining In Islam

In trading activities, there are some processes that are commonly performed by parties involved in such activities, such as bidding on regular sales. Bidding (on goods that do not have a fixed price) is usually related to price determination, because it is an unassailable reality that a seller wants the goods sold to sell at a high price, while the buyer wants to buy at a low price. For this, there is a bargaining process between the seller and the buyer to set the price.

Islam gives a rule about bargaining ethics that does not cause The existence of the aggrieved party in the Hadith Muslim History: From Ibn 'Umar, he said, the Prophet sallallaahu' alaihi wa sallam said:

“Let no one sell above the sale of his brother. Nor should a person preach upon his brother's sister unless he has permission of it” (Hadith History Muslim no. 1412)

From Ibn 'Umar, he said that the Prophet sallallaahu' alaihi wa sallam said:

“Let not one of you bid on his brother's offer” (Hadith History Bukhari)11

Bidding is the goods or services offered at a certain amount and price level and under certain conditions. Islamic bidding also distinguishes it from conventional offerings, that the goods or services offered must be transparent and specified in the specifications, what is the condition of the goods, what are the advantages and disadvantages of the goods. Do not let our offer harm the requesting party. The Messenger of Allah in the bidding always specifies about the specifications of his wares, to the extent that his purchase price was mentioned and offered at what price the goods are purchased and which will be obtained by it.

Offers in conventional buying and selling are inevitable processes. This is due to two contradictory interests. The seller, of course, wants to be able to sell his goods for a high price. While on the one hand, the buyer of course want to buy goods at a low price.

In the above hadith, there is ethics to be considered by both parties involved in the transaction. The prohibition of buying on someone else's sales knows that the offer of someone else is not only shown to the buyer, but also to the seller.

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For sellers, practices that violate the ethics of the offer may take the form of offering merchandise at a lower price to a potential buyer bargaining with another seller. The practice may also be in the form of offering better quality goods at the same price to potential buyers who are bargaining or during khiyar with other sellers.

The offer, of course, aims to redirect prospective buyers to buy their merchandise and leave the seller beforehand. This way is prohibited because it is very unethical when there are parties who seize prospective buyers in an unethical way. For potential buyers, the practice of bidding other people's offers that violate the offer ethics in this hadith may take the form of:

a. The second buyer gives a higher bid price than the first bidder who is bidding with the seller or on the sale and purchase that is still in khiyar time.

b. The second buyer asks the seller who is in khiyar's time to cancel the sale with the first buyer by promising to buy at a higher price. c. In practice, it includes bidding against someone else's offer when a new buyer declares a shortage of goods that the previous prospective buyer is bidding on. Such a way is done with the intent that the bidder does not buy the item and the second buyer intends to buy it.

The prohibition in the traditions indicates that in the sale and purchase transaction is not justified unhealthy competition between prospective buyers. Therefore, it has received very serious attention from the Holy Prophet. Buyers are only allowed to bid on goods that are not offered by others. Although the buyer is very interested in the goods being offered by other people.

This prohibition in the hadith gives guarantees to parties who may be in a disadvantageous position, so that strong socio-economic parties do not apply arbitrarily to people who are socially economically weak.

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The bidding prohibition is only when both prospective buyers and sellers are in the bidding process or in khiyar period. This prohibition can anticipate the occurrence of quarrels or hostilities between fellow buyers.

Bidding against other people's bids can also happen to sellers. For example, when a seller is bargaining with a prospective buyer A, then another merchant offers A to the same item at a cheaper price, or the same price for the same item for a better quality item. Disallowment is indicated for prospective sellers if the goods that become the object of sale and purchase are in the bidding process or in the khiyar period.

This prohibition can anticipate the occurrence of disputes or hostilities between sellers sellers. That is what Islam maintains, so that the transaction will not be a source of contention between the parties involved in the transaction. Especially for the seller, hostility sesame seller will affect the performance of each. Do not to think of the progress of his business, the hostility will cause other harmful things.

This hadith is contained in a long series of traditions, the rule of ethics of this offer is adjacent to the prohibition of proposing the proposal of others, until the first suitor decides not to woo. The essence of the prohibition is the same, that is, the latter should pay attention to the ethics of fair competition. With the meaning of the latter party does not seize with various excuses.

If there is a sale and purchase with this prohibited bidding process, then there are differences in income on the law of sale and purchase, namely:

a. According to Jumhur, the sale is legitimate but sinful.

b. According to Hanafiyah and Malikiyah in one of their narrations and Ibn Hazm stated that the sale is not legitimate.

The occurrence of such disagreements may be caused by legitimate or not the sale and purchase is usually seen from the complete or not the terms of rukun jual beli. For fuqaha 'which states that the sale is legitimate but sinful, then the focus is fulfilled the terms of the rukun. But for those who say the law of buying and selling is not valid, because assume one of the elements in the hadith is not perfect.12

2. Adab Bargaining In Islam

a. Buying intention (if not buying intention do not bid and cancel price agreement) action to cancel the agreement is less civilized, disappointing and can hurt the seller, whereas the already agreed although fortunately so not much, because the seller is tired of

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negotiable, ngabisin time, financial loss even added loss of resentment because the buyer acts only playfully and cheat the deal.

b. When It's Deal / OK Must Buy, so the seller is not disappointed / hurt

c. Do not bargain the goods that people are bargaining, Do not you envy and envy each other and do not mention the badness of others. Do not hate each other and do not hostile to each other and do not bid each other higher on other offerings. Be the brothers of God. A Muslim is another Muslim brother by not denying him, not disappointing him, not lying to him and not degrading him. The location of piety is here (the Prophet Saw points to his chest until it is repeated three times). One deserves bad judgment when demeaning his Muslim brother. A Muslim is forbidden to shed blood, seize property, and tarnish the honor of another Muslim. (Hadith History Muslim).

d. Sellers Do not over-praise their wares Buyers do not criticize merchandise. Bidding against other people's bids can also happen to sellers. When a seller is bargaining with a prospective buyer A, then another merchant offers A to the same item at a cheaper price, or a price equal to a better quality.

This prohibition can anticipate the occurrence of disputes or hostilities between fellow sellers. That is what is maintained by Islam, so that the transaction will occur the source of contention between the parties involved in the transaction. Especially for the seller, hostile fellow sellers will affect the performance of each. Let alone to think of the progress of his business, hostilities will cause other harmful things.

E. CONCLUSION

Bargaining occurs in the sale and purchase transactions conducted by two or more parties. So in the sale and purchase transactions there are several ethics that must be fulfilled by each party who perform transactions, especially in bargaining process (bargaining). The bargaining process in Islam is allowed as long as it does not harm any of the transacting parties. If it is harmful to one party, then it is deemed void of the transaction process, and it is clearly not legitimate trading contract in doing so.

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Reference

Al-Mushlih.Prof.DR.Abdullah dan Prof.DR.Shalah Ash-Shawi, Jual Beli Dan Hukum-hukumnya,Jakarta, pustaka pelajar,2001

Huda, Nurul dkk, Ekonomi Makro Islam, Jakarta: Prenada Media Group, 2008,

Mannan, Muhammad Abdul, Islamic Economics, Theory and Practice, India: Idarah Adabiyah,, 1980

Naqvi, Syed Nawab Haider, Menggagas Ilmu Ekonomi Islam, terj. M. Saiful Anam dan Muhammad Ufuqul Mubin, Yogyakarta: Pustaka Pelajar, 2009

Nasution, Mustafa Edwin, dkk, Pengenalan Eksklusif Ekonomi Islam, Jakarta: kencana, 2006

Rahman, Afzalur, Doktrin Ekonomi Islam, terj. Soerojo dan Nastangin, Jilid Ī Yogyakarta: Dana Bhakti Wakaf, 1995