Capturing the high-risk environment of the transition economy in Bulgariaa simulation-based DSS
Eastern European countries have undergone a transition from centralized economic planning to more open economic systems. Hard data based upon past experience are inappropriate for decision making in this radically changed environment. A team of Bulgarian and U.S. researchers utilized system dynamics simulation to model the microeconomic environment of a Bulgarian winery expanding into regional and international markets. Expert opinion was provided for both micro- and macroeconomic factors. Given the uncertainty of the data and the ambiguity in the experts' opinions, fuzzy logic was used to model the transitional economic firm's decision making.
transition economies simulation system dynamics fuzzy models