From supply and demand to oligopoly via fuzzy sets

Abstract

This paper links two theoretical models, the oligopoly market form and the supply/demand paradigm, via fuzzy sets to provide an empirically consistent model of fuzzy decision-making. Most significantly, both models are shown to merge in the short-run when decision-making and intrinsic uncertainties are described by fuzzy sets. Our results and method highlight the importance of introducing fuzzy logic into economic analysis.