Application of Fuzzy Set Theory to Economics

Abstract

It has been widely recognized by economists that economic behavior generally involves both elements of stochasticness and/or fuzziness. The objects which economic theory deals with are replete with all sorts of fuzzy emotions, perceptions and processes. While a rich literature on economic behavior under a stochastic environment has developed during the past decade,1 it is notable that virtually no systematic attempt has been made to-date to investigate economic behavior under fuzziness.