Convex preferences: A new definition

Michael Richter, Ariel Rubinstein

    Research output: Contribution to journalArticle

    Abstract

    We suggest a concept of convexity of preferences that does not rely on any algebraic structure. A decision maker has in mind a set of orderings interpreted as evaluation criteria. A preference relation is defined to be convex when it satisfies the following condition: If, for each criterion, there is an element that is both inferior to b by the criterion and superior to a by the preference relation, then b is preferred to a. This definition generalizes the standard Euclidean definition of convex preferences. It is shown that under general conditions, any strict convex preference relation is represented by a maxmin of utility representations of the criteria. Some economic examples are provided.

    Original languageEnglish (US)
    Pages (from-to)1169-1183
    Number of pages15
    JournalTheoretical Economics
    Volume14
    Issue number4
    DOIs
    StatePublished - Nov 1 2019

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    Keywords

    • C60
    • Convex preferences
    • D01
    • abstract convexity
    • maxmin utility

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)

    Cite this

    Richter, M., & Rubinstein, A. (2019). Convex preferences: A new definition. Theoretical Economics, 14(4), 1169-1183. https://doi.org/10.3982/TE3286