Information model of economy

Abstract

A new stochastic model of economy is developed that takes into account the choice of consumers are the de- pendent random fields. Axioms of such a model are formulated. The existence of random fields of consumer's choice and decision making by firms are proved. New notions of conditionally independent random fields and random fields of evaluation of information by consumers are introduced. Using the above mentioned random fields the random fields of consumer choice and decision makin g by firms are constructed. The theory of economic equilibrium is developed. The proposed stochastic model of economy contains a new approach to the description of consumer choice and making a decision by firm. This description is based on real observations of consumer choice that is described by probability measures ensemble given on budget sets of consumer. This description differs from classical description of consumer choice and making a decision by firm because consumers and firms make their choice and decision having information about the state of economy and their choice or decision depend on the available information. Our approach permits to construct random fields of consumer choice and making a decision by firms that are dependent random fields. This is very important because as Pareto showed the distribution of wealth for several nations has a power law. This result it is impossible to obtain if we restrict ourselves to classical description of consumer choice and take into account that consumers make their choice independently (6). We develop the theory of economic equilibrium that is as strict as in the classical approach (2). We also develop algorithms of finding equilibrium states that are constructive and are also applicable to the classical case (4,5). Such an approach solves the problem that the wealth in several societies is distributed according to Pareto law (7,6).