Principle of rationality in economically-mathematical modeling of demand
Journal Title: Вісник Житомирського державного технологічного університету. Серія: економіка, управління та адміністрування - Year 2019, Vol 88, Issue 2
Abstract
The problem and its connection with important scientific and practical tasks. Economy has an effective tool for explaining changes in the economic environment, it is modelling of economic processes. This type of modelling depends on the construction of the economic model, on the basis of which the formalization of the economic process occurs, that is, the construction of a mathematical model takes place. An effective way to formalize the economic process is to create a hypothetical model. It is necessary to build a demand model in the market of goods and services. As a result of modelling, the problem includes the obtaining certain functional characteristics of demand curves, on which their mathematical model is determined. The conditions, under which the economic model of demand is formed, are not enough. The economic model of demand includes the condition – the principle of rational behavior of consumers in the market of goods and services. Under these conditions, the built-up economic-mathematical model of demand made it possible to obtain the necessary functional characteristics of the demand curves – convexity, differentiation, and smoothness. Analysis of the latest researches and publications. The works of many scientists, both foreign and domestic, are devoted to the study and construction of models of demand curves. Despite the significant achievements of scientists, there are such issues as the functional characteristics of the curves, and their practical use in the modelling process. The purpose of the article is to describe the functional properties of demand curves in the market of goods and services on the base of modeling of their demand. Scientific novelty and practical value. The theoretical regulations (for functional properties of demand curves) received as a result of the present research, that is, convexity, differentiation, smoothness give extra practical possibilities in the microeconomic analysis and constructions of models of curves according to statistical data. The methods of the study can also be applied to determine the functional properties for demand curves.
Authors and Affiliations
N. V. Valinkevich, K. S. Soloninko, A. Yo. Schehorskiy
Keywords
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