The widespread use of fuzzy set theory in almost every science attests to its intuitive appeal and the powerful insights it offers. Despite its relevance as a tool for evaluating non-stochastic behavioural uncertainty and its clear applicability to the business world, fuzzy mathematics has yet to establish itself in mainstream economic analysis.
Fuzzy Sets and Economics presents a clear and concise introduction to fuzzy mathematics and demonstrates its adaptability to the analysis of oligopolistic competition. In particular, the author indicates how the economic evaluation of non-cooperative oligopoly markets is changed when fuzzy set mathematics is used. The neoclassical view that oligopolistic competition is inefficient is shown only to apply in the short run while policy matters, such as antitrust, and some basic economic fundamentals, such as the supply-demand paradigm, are affected by the introduction of a fuzzy mathematics framework.
Yusuf M. Mansur, Formerly Assistant Professor of Economics, University of Oklahoma, US
Introduction to fuzzy set theory; oligopolistic competition and fuzzy logic; fuzzy opportunity costs; the long-run competitive oligopoly equilibrium; from fuzzy math to chaos theory and the long run; various applications of fuzzy math to economics.