This paper aims to propose the fuzzy approach to estimate parameters of the catastrophe models. It begins with an introduction that contains a brief review of catastrophe theory and models. Several methods that have been used to estimate the catastrophe model parameters are reviewed. Next, we will apply a fuzzy concept to estimate catastrophe model parameters based on an empirical data and we compare our results with the unfuzzy approach. Fuzzy approach is proposed since fuzzy logic may tolerate data that contain uncertainty. Using the model index criteria, AIC and BIC, we find that the fuzzy approach is better than the unfuzzy approach.

catastrophe model, fuzzy theory, AIC and BIC.