Beyond Homo Economicus - developing a multi-dimensional utility function based on islamic paradigm of stewardship (Istikhlaf)

The reliance of neoclassical economics on "Homo Economicus", an individual who makes instrumental rational decisions based solely on methodological individualism, is being criticized by many scholars in terms of both empirical evidence and ethics. In this paper, it conducted a critical evaluation of the philosophical foundation for this self-interested "agent" model and proposed a new epistemic paradigm based on the concept of "Steward Human" or (Al-Insan Al-Mustakhlaf/Homo Islamicus). Based on the Islamic economic theory of stewardship (Istikhlaf), this paper utilizes a combination of contemporary behavioral economics and experimental methodologies to determine how humans manage their actions toward the governance of common pool resources and the basic tenets of Islamic epistemology (Tawhid, Istikhlaf and Taschkeer) to derive a multi-dimensional utility function. The proposed alternative utility function expands upon the classical utility maximization problem from merely self-interest to include an additional area related to active social responsibility and Ethical Purification (Tazkiyah) with regard to divine accountability. The findings indicate that the stewardship model not only addresses the behavioral anomalies found in traditional rational-choice theory but also creates a more realistic and sustainable foundation for economic behavior leading to comprehensive Civilizational Flourishing (Umran). The main objective of this research is to build an interdisciplinary bridge between Islamic epistemology and the current trends in behavioral economics in order to create a strong value-based microeconomic alternative for the current age of ecological constraints and socio-economic crises.