Abstract
Using fuzzy theory, this study sets up a general equilibrium model, where is economic model. In this paper, decisions of economic agents consisting of firms and households are represented by a fuzzy set. Since prices of goods are ambiguous and are affected by the nature of the goods themselves as well as the location of agents, therefore a good's price is represented by a fuzzy set varying with the agent. Using the Extension Principle and fuzzy mapping, the model's economic behavior is defined. In contrast to traditional theory, economic equilibrium is defined as the state in which fuzzy prices are not adjusted. We show the existence of that state. Moreover, we extend the model to the case where decisions and prices have non-comparable ambiguities, and where the membership functions reach an N-dimensional point. In such a case, we show the existence of the equilibrium state in the same manner.
