IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Fuzzy Logic and Intelligent Agents: Towards the Next Step of Capital Budgeting Decision Support

  • Collan, Mikael
  • Liu, Shuhua

The economic life of large investments is long and thus necessitates constant dynamic managerial actions. To be able to act in an optimal way in the dynamic management of large investments managers need the support of advanced analytical tools. They need to have constant access to information about the real time situation of the investment, as well as, access to up-to-date information about changes in the business environment. What is more challenging, they need to integrate qualitative information into quantitative analysis process, and to integrate foresight information into the capital budgeting process. In this paper we will look at how emerging soft computing technologies, specifically fuzzy logic and intelligent agents, will help to provide a better support in such a context and then to frame a support system that will make an integrated application of the aforementioned technologies. We will first develop a holistic framework for an agent-facilitated capital budgeting system using a fuzzy real option approach. We will then discuss how intelligent agents can be applied to collect decision information, both qualitative and quantitative, and to facilitate the integration of foresight information into capital budgeting process. Integration of qualitative information into quantitative analysis process will be discussed. Methods for integrating qualitative and quantitative information into fuzzy numbers, as well as, methods for using the fuzzy numbers in capital budgeting will be presented. A specification of how the agents can be constructed is elaborated.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by IAMSR, Åbo Akademi in its series Working Papers with number 398.

in new window

Length: 1-18
Date of creation: 2002
Date of revision:
Handle: RePEc:amr:wpaper:398
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is featured on the following reading lists or Wikipedia pages:

  1. ファジィ論理 in Wikipedia Japanese ne '')
  2. फ़ज़ी लॉजिक in Wikipedia Hindi ne '')

When requesting a correction, please mention this item's handle: RePEc:amr:wpaper:398. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mikael Collan)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.