This paper aims to model the impact of retail consumers’ behavior on a new banking dual market featuring both conventional and Islamic banking products. To build the model, we conduct an empirical qualitative and quantitative survey on Moroccan market consumers in order to appraise their preferences with regard to banking products’ attributes. Then, we use conjoint analysis method to determine the consumers’ decision function. We run market simulations on a Multi-Agents Simulation platform and analyze the results. Our findings indicate that in new dual markets, and under a range of assumptions, it is predicted that Islamic banks will face excess liquidity while conventional banks will be exposed to liquidity shortage.

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In addressing the limitations of solving the Prisoner's Dilemma problem describing the firm-end consumer Corporate Social Responsibility (CSR) dynamics from a purely rational perspective, we propose to introduce the variables of emotions and peer pressure to capture the irrational aspect of human decision making. We refer to the Theory of Planned Behavior to construct a decision making model that describes the game, then we use multi-agent simulation to run the model under various market conditions. Results show that socially responsible firms could achieve above-average profits when they are able to quickly recover their CSR investment and when they operate in a market where a large portion of consumers hold initial positive attitudes towards CSR. In addition, our results indicate that above-average profits can be achieved only in the absence of consumer green confusion. Managerial implications on trust and customer loyalty are discussed based on the above findings.

Theoretically, Islamic banks should not be exposed to the risk of interest rate fluctuations. Indeed, in the literature, Islamic finance is considered a finance without interest that stands out from conventional finance by means of profit sharing and losses. In practice, although Islamic banking products are not directly based on interest, several studies mentioned in this article have shown that these banks are not completely immune to this kind of risk. Moreover, unlike conventional banks, Islamic banks do not have the same flexibility to cover this risk since they do not use interest. So, the assessment of the level of exposure to interest risks and understanding its determinants is essential for studying the appropriate hedging strategies and the guarantee of stability of Islamic banks.