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Models of market division into trade areas in the fuzzy conditions

Liudmyla Tarasova, Olena Piskunova

Competition for market led to the problem of market division into trade areas and the appearance of numerous models of trade areas. Classical models, which are called as "models of spatial interaction", describe the market division into trade areas in precise conditions. To build more adequate models to modern economy it's appropriate to use the theory of fuzzy sets. It is proposed in the article a new approach to market division into trade areas in fuzzy conditions with usage of Hamming distance, which takes into account the economic sense of the problem and eliminates the incorrectness of classical approach, based on the composition of binary relations. It’s introduced the new concepts such as the Hamming distance with positive deviation for fuzzy set and the Hamming distance with negative deviation for fuzzy set. There is developed in the article the methodology of determining the threshold of separation and proposed the expansion of the concept of solving the problem of market division into trade areas. So, it’s proposed not only to allocate the trade areas, but also research primary, secondary and tertiary trade zones as the degree of belonging to a potential customer using the values of the membership functions. The results of solving of applied problem under our approach is logical and not contradictory to real processes in the economy.

Keywords. Model of division, trade areas, the composition of binary relations, the Hamming distance for fuzzy set, the Hamming distance with positive deviation for fuzzy set, the Hamming distance with negative deviation for fuzzy set, fuzzy cluster, the threshold of division.

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