Convex preferences: Difference between revisions

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In [[economics]], '''convex preferences''' refer tois a property of an individual's ordering of various outcomes which roughly corresponds to the idea that "averages are better than the extremes". The concept roughly corresponds to the concept of [[marginal utility#Diminishing marginal utility|diminishing marginal utility]] without requiring [[utility function]]s.

Comparable to the greater-than-or-equal-to [[Order theory#Partially ordered sets|ordering]] relation <math>\geq</math> for real numbers, the notation <math>\succeq</math> below can be translated as: 'is at least as good as' (in [[Preference (economics)|preference]] satisfaction). Use ''x'', ''y'', and ''z'' to denote three consumption bundles (combinations of various quantities of various goods). Formally, a preference relation ''P'' on the [[consumption set]] ''X'' is [[Convex set|convex]] if for any