Dynamic Many Valued Logic Systems in Theoretical Economics

TL;DR

This paper introduces a dynamic many-valued logic framework to better understand economic reasoning, focusing on how subjective beliefs and objective valuations evolve with new information and ambiguous preferences.

Contribution

It develops a novel logical approach integrating dynamic updates and many-valued logic to model economic decision-making processes.

Findings

Provides a formal logical model for dynamic economic reasoning

Addresses ambiguity and perception issues in decision-making

Enhances understanding of belief updates in economic actions

Abstract

This paper is an original attempt to understand the foundations of economic reasoning. It endeavors to rigorously define the relationship between subjective interpretations and objective valuations of such interpretations in the context of theoretical economics. This analysis is substantially expanded through a dynamic approach, where the truth of a valuation results in an updated interpretation or changes in the agent's subjective belief regarding the effectiveness of the selected action as well as the objective reality of the effectiveness of all other possible actions (i.e. consequence realization). Complications arise when the economic agent is presented with a set of actions that render ambiguous preference, or when the effectiveness of an action cannot be perceived upon its selection, thereby necessitating a different theory of choice and consequence realization.