© J. Fidler, Ł. Matysiak. Article available under the CC BY-SA 4.0 licence
ARTICLE
ABSTRACT
Mathematical risk modeling in a market economy has become a key tool for analyzing consumer behavior under conditions of unstable prices and shifting supply. In this study, we combine Paul Samuelson’s classical theory of revealed preferences with dynamic demand and supply mechanisms, using Afriat’s theorem and extensions by Varian and Mas-Colell to construct utility functions without survey data. Critical voices (e.g. Dryzek) prompt a reexamination of the assumptions of full information and fixed preferences, inspiring our proposal of the F(w, z) function that accounts for the strength of market fluctuations. Empirical simulations and an analysis of market equilibrium stability yield new insights for economic policy and marketing strategies.
KEYWORDS
budget, demand, preference, price, supply
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