1. DYNAMIC BEHAVIOURAL DECISION SYSTEMS.
- Author
-
Badescu, Adrian Victor and Cristea, Radu Nicolae
- Subjects
- *
FUZZY algorithms , *INVESTMENTS , *GAME theory , *MERGERS & acquisitions , *FUZZY logic - Abstract
This paper explains mathematically the concept of investment agent's bounded rationality to bring a new perspective on the use of threats as means of analyzing competition. The paper thus blends together two approaches: strong efficiency economics and behavioral economics. Further we construct a dynamic situation and considering a two step duopoly we develop a new type of equilibrium - a fuzzy equilibrium - that is better suited for real decision situations. [ABSTRACT FROM AUTHOR]
- Published
- 2011