Dealing with Imprecision in Consumer Theory: A New Approach to Fuzzy Utility Theory

  • David  Gálvez Ruiz
  • José Luís Pino Mejías
Part of the Studies in Computational Intelligence book series (SCI, volume 502)


This chapter presents a new approach to dealing with imprecision in the Classical Consumer Utility Theory based on the concept of Marginal Rate of Substitution (MRS) and using the concept of fuzzy sets and fuzzy numbers. The methodology developed applies imprecision to MRS, whereas previous studies placed the imprecision factor on final utility values and functions. The chapter considers fuzzy elements applied to MRS and uses the necessary formulations to obtain the results in Utility Theory. In this fuzzy environment, the final consumer decision problem is framed as a fuzzy nonlinear programming problem, maintaining the classical structure in which consumers maximize their fuzzy utility subject to budget constraints, and showing that the consumer optimum choice is a fuzzy set. The chapter will also address the problem of aggregation of utility functions in order to offer a multi-criteria approach.


New directions of decision analysis under uncertainty Muti-criteria decision making 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  • David  Gálvez Ruiz
    • 1
    • 2
  • José Luís Pino Mejías
    • 1
    • 2
  1. 1.Department of Statistics and Operational ResearchFaculty of Mathematics. University of SevilleSevillaSpain
  2. 2.Quantitative Methods on Evaluation Research GroupUniversity of SevilleSevillaSpain

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