Decision and stability analysis in fuzzy economics

The sheer complexity of causation in the economic arena mandates a fuzzy approach. In this study we consider economic system as human centric and imperfect information based realistic multi-agent system with fuzzy-logic-based representation of the economic agents´ behavior and with imprecise constraints. We will mainly consider two important problems of fuzzy economics: fuzzy decision principle and fuzzy stability of imperfect economic system. The first approach in classical theory of choice was formulated axiomatically in the expected utility theory and subjective expected utility theory. These theories are the predominant economic theories for decision making under uncertainty. The widely used principle of maximization of expected utility has serious shortcomings. In this study, we introduce and develop a generalized theory of stability (GTS) for analysis of complex economical dynamical systems described by fuzzy differential equations (FDE).