Optimal Strategy of State Lands allocation in Islamic Economics: Game Theory Approach

In the Islamic legal and economic system, a precise mechanism for land use is defined. The classification of lands, along with the flexible methods available to the government for the allocation of land, raises the question of what is the most desirable method for state lands allocation based on the Islamic legal and economic system? Accordingly, the purpose of the present study is to find a favorable strategy for the transfer of state lands within the framework. The method used in this article is game theory, in which the main actors are the government as the custodian of land management and the applicants for land acquisition, both individuals and legal entities, each of which pursues different goals and strategies. The concept of Nash equilibrium has been used to find the optimal strategy in which none of the actors will be willing to deviate from the status quo. The results of research based on two scenarios of higher profits of productive and useful economic activities than Speculative activities and vice versa, indicate that the allocation of land in exchange for taxes commensurate with the level of production, is the best way for the Islamic government because firstly It will be sustainable and high income, secondly, it will provide excellent support for productive economic activities, and finally, it will prevent speculative activities.