Cost-Benefit Analysis and the Theory of Fuzzy Decisions: Fuzzy Value Theory (Studies in Fuzziness and Soft Computing (160))

This monograph is devoted to the development of value theory of computable general prices in cost-benefit analysis under fuzzy rationality. The book demonstrates the use of fuzzy decision algorithms and logic to develop a comprehensive and multidisciplinary cost-benefit analysis by taking advantage of current scientific gains in fuzziness and soft computing. The theory is developed at a basic level of microeconomics leading to aggregation in fuzzy decision environment composed of subjective phenomenon, imprecision, approximations and problems of information elicitation. The book integrates the theories of computable prices, fuzzy decisions and social decision-choice processes into a set of decision algorithms accessible to practitioners, researchers, graduate students, and policy makers in economics, engineering, as well as physical, social, and medical sciences. It brings into focus the fuzzy mathematical theories of computable equilibrium prices, social discount rate and cost-benefit criterion on both micro and aggregate levels and how they relate to revealed preference, contingent valuation and hedonic pricing methods. Additionally the monograph covers computational problems of optimal taxation, cost-benefit distributions, social goal-objective formation and rent-seeking activities as fuzzy processes. Criticism is the habitus of the contemplative intellect, whereby we try to recognize with probability the genuine quality of a l- erary work by using appropriate aids and rules. In so doing, c- tain general and particular points must be considered. The art of interpretation or hermeneutics is the habitus of the contemplative intellect of probing into the sense of somewhat special text by using logical rules and suitable means. Note : Hermeneutics differs from criticism as the part does from the whole. Antonius Gvilielmus Amo Afer (1727) There is no such thing as absolute truth. At best it is a subj- tive criterion, but one based upon valuation. Unfortunately, too many people place their fate in the hands of subjective without properly evaluating it. Arnold A. Kaufmann and Madan M. Gupta The development of cost benefit analysis and the theory of fuzzy decision was divided into two inter-dependent structures of identification and measurement theory on one hand and fuzzy value theory one the other. Each of them has sub-theories that constitute a complete logical system.

This monograph is devoted to the development of value theory of computable general prices in cost-benefit analysis under fuzzy rationality. The book demonstrates the use of fuzzy decision algorithms and logic to develop a comprehensive and multidisciplinary cost-benefit analysis by taking advantage of current scientific gains in fuzziness and soft computing. The theory is developed at a basic level of microeconomics leading to aggregation in fuzzy decision environment composed of subjective phenomenon, imprecision, approximations and problems of information elicitation. The book integrates the theories of computable prices, fuzzy decisions and social decision-choice processes into a set of decision algorithms accessible to practitioners, researchers, graduate students, and policy makers in economics, engineering, as well as physical, social, and medical sciences.

Front Matter....Pages i-xvi The Theory of Fuzzy Optimal and Approximate Social Prices....Pages 1-53 The Theory of Optimal Social Discount Rate....Pages 55-93 The Theoretical Structure of Cost-Benefit Criteria, Choice of Project and Discounting Process....Pages 95-121 The Theory of Fuzzy Present Value (FPV)....Pages 123-146 The Theory of Fuzzy Decisions, Optimal Taxation and Cost-Benefit Distribution....Pages 147-191 Toward a Theory of Social Goals and Objective Formation in Cost-Benefit Analysis....Pages 193-242 Back Matter....Pages 243-346