Use of Symmetries in Economics: An Overview

Authors

Vladik Kreinovich, The University of Texas at El PasoFollow
Olga Kosheleva, The University of Texas at El PasoFollow
Nguyen N. Thach, Banking University of Ho Chi Minh CityFollow
Nguyen Duc Trung, Banking University of Ho Chi Minh City

Publication Date

1-2019

Comments

Technical Report: UTEP-CS-19-03

Abstract

In this paper, we show that many semi-heuristic econometric formulas can be derived from the natural symmetry requirements. The list of such formulas includes many famous formulas provided by Nobel-prize winners, such as Hurwicz optimism-pessimism criterion for decision making under uncertainty, McFadden's formula for probabilistic decision making, Nash's formula for bargaining solution -- as well as Cobb-Douglas formula for production, gravity model for trade, etc.