Fuzzy sensitivity analysis in a DSS modeling an oligopolistic environment

A prototype decision support system (DSS) which directly addresses the nonstochastic uncertainties of an oligopolistic environment is described. The DSS evaluates price and advertising decisions in the light of imperfect judgmental knowledge about the price and advertising decisions of competitors. Traditional econometric forecasting methods used to develop the existing system are maintained, but the theory of fuzzy sets equips the models with direct assessment of nonstochastic uncertainty. In addition to parameterizing the econometric equations, the decision-maker assesses one´s level of knowledge regarding the fuzzy quantities. These assessments are reflected directly in the output of the enhanced DSS. A practical implementation of the DSS was achieved for the purpose of describing the benefits of sensitivity analysis