Using Boolean algebra to model the economic decision-making / Usando a álgebra booleana para modelar a tomada de decisão econômica

Javier Humberto Ballesteros Rozo


The study of decision theory by the economy has been characterized as a normative model rather than a descriptive model that is typical of other social sciences. This document presents a theoretical approach to descriptive model defining the elements required to take a particular course of action. The use of the tools belonging to the Boolean algebra is proposed, as are the truth tables and their associated functions to explain the decision process of one or several actions.

Thanks to the reduced functions, it can observe which variables really affect certain decisions of different economic agents such as people, firms, government, among others. In addition, it is found that high levels of utility are given by have the best information and decisions that are satisfactory, instead of coming from processes of maximization that are not realistic.


economic agent, Boolean algebra, satisfactory decision, decision theory, utility

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