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

    Fingerprint

    Preference relation
    Decision maker
    Evaluation criteria
    Utility representation
    Economics
    Convexity

    Keywords

    • abstract convexity
    • C60
    • Convex preferences
    • D01
    • 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

    Convex preferences : A new definition. / Richter, Michael; Rubinstein, Ariel.

    In: Theoretical Economics, Vol. 14, No. 4, 01.11.2019, p. 1169-1183.

    Research output: Contribution to journalArticle

    Richter, M & Rubinstein, A 2019, 'Convex preferences: A new definition', Theoretical Economics, vol. 14, no. 4, pp. 1169-1183. https://doi.org/10.3982/TE3286
    Richter, Michael ; Rubinstein, Ariel. / Convex preferences : A new definition. In: Theoretical Economics. 2019 ; Vol. 14, No. 4. pp. 1169-1183.
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