Economic expectations, fuzzy sets and financial planning
Expectations are the constructs agents use to incorporate uncertainty into their decision-making problems. Every financial problem of significance is forward-looking, which compels us to include uncertainty into modeling. In this paper we concentrate on corporate financial planning. The high level of detail in conventional planning models has been obtained at the cost of excluding uncertainty, which cripples those models for practical purposes. In contrast, fuzzy sets-based quantitative methodologies are able to incorporate uncertainty into the planning model. The use of such methodology requires a simplification strategy to deal with the complexity of financial planning.
expectations fuzzy sets financial planning fuzzy mathematical programming