Abstract

In this paper, we propose a fuzzy differential-difference equation for modeling of mixed continuous-discrete phenomena. In the special case, we present the general solution of linear fuzzy differential-difference equations. The dynamical process in the intervals is presented by the corresponding fuzzy differential equation and with impulsive jumps in some points. We illustrate the applicability of the model to study the time value of money.

Highlights

  • Differential and difference equations play a relevant role in modeling problems that arise in physics, engineering, biology, economics, finance, and many other areas

  • The dynamical process in each interval is presented by the corresponding differential equation and it displays impulsive jumps, obtained by the corresponding difference equation

  • Motived by the results obatined in Reference [15], on continuous-discrete models, and the recent advances on fuzzy differential equations [2,8], in this article we introduce fuzzy differential-difference equations

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Summary

A New Continuous-Discrete Fuzzy Model and Its Application in Finance

Faculty of Mathematics and Statistics, Ton Duc Thang University, Ho Chi Minh City 758307, Vietnam.

Introduction
Preliminaries
General Mixed Continuous-Discrete Fuzzy Model
Linear Fuzzy Differential-Difference Equations
Application
Conclusions
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