Convex preferences: Difference between revisions

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An indifference curve displaying convex preferences thus means that the agent prefers, in terms of consumption bundles, averages over extremes (agents express a basic inclination for diversification).

In relation to indifference curves this principle refers to the concept of diminishing marginal rate of substitution.

==References==

* Hal R. Varian. ''Intermediate Microeconomics A Modern Approach''. New York: W.W. Norton & Company. ISBN 0-393-92702-4

* Mas-Colell, Andreu; Whinston, Michael; & Green, Jerry (1995). ''Microeconomic Theory''. Oxford: Oxford University Press. ISBN 978-0-19-507340-9

In relation to indifference curves this principle refers to the concept of diminishing marginal rate of substitution.

== See also ==