Systemic regulation of national and regional economy
General systems theory
Information Technology
Optimization, identification, the theory of games
S. A. Panov, A.D. Ragulsky Conditional optimization with adaptive metric: target programming in describing the dynamics of consumer preferences
System analysis in medicine and biology
S. A. Panov, A.D. Ragulsky Conditional optimization with adaptive metric: target programming in describing the dynamics of consumer preferences
Abstract. 

The article considers the mathematical model and methods that allow to simulate the dynamics of optimization of consumer preferences in the conditions of changes in both external factors of demand (income and prices) and the consumer’s own attitudes. The application of the target programming method at the nonlinear utility function is demonstrated. Features of the approach used: optimization of the actual state of the system, with a focus on the target state, which is currently not achievable; the use of adaptive metrics, i.e. the existence of an algorithm that provides adjustment (“adjustment”) of the parameters of the metric when external demand factors and / or consumer settings change through the feedback system. It is shown that this mathematical model allows to simulate, among other things, the effect of “transactional utility”, identified in the framework of research on behavioral economics.

Keywords: 

demand, utility function, consumer preferences, psychological attitude, target programming, adaptive metrics, feedback, behavioral economics, transactional utility.

PP. 82-92.
 
DOI: 10.14357/20790279210409
 
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