Arrow Index of a Fuzzy Choice Function

Article type: Research Article

Authors: Georgescu, Irina

Affiliations: Academy of Economic Studies, Dept. of Economic Cybernetics, Piata Romana No 6, Bucharest, Romania. E-mail: irina.georgescu@csie.ase.ro

Abstract: The Arrow index of a fuzzy choice function C is a measure of the degree to which C satisfies the Fuzzy Arrow Axiom, a fuzzy version of the classical Arrow Axiom. The main result of this paper shows that A(C) characterizes the degree to which C is full rational. We also obtain a method for computing A(C). The Arrow index allows to rank the fuzzy choice functions with respect to their rationality. Thus, if for solving a decision problem several fuzzy choice functions are proposed, by the Arrow index the most rational one will be chosen.

Keywords: fuzzy choice function, revealed preference indicator, congruence indicator, similarity

DOI: 10.3233/FI-2010-248

Journal: Fundamenta Informaticae, vol. 99, no. 3, pp. 245-261, 2010