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In economics, non-convexity refers to violations of the convexity assumptions of elementary economics. Basic economics textbooks concentrate on consumers with convex preferences (that do not prefer extremes to in-between values) and convex budget sets and on producers with convex production sets ; for convex models, the predicted economic ...
Abstract. The purpose of this contribution is to provide an overview of developments in nonconvex production technologies and economic value functions, with special attention to the cost function. Apart from a somewhat selective review of theoretical issues, the emphasis is on whether the assumption of convexity makes a difference in practice.
For example, a solid cube is convex; however, anything that is hollow or dented, for example, a crescent shape, is non‑convex. Trivially, the empty set is convex. More formally, a set Q is convex if, for all points v0 and v1 in Q and for every real number λ in the unit interval [0,1], the point. (1 − λ ) v0 + λv1.
Carnegie Mellon University
Dec 27, 2016 · Abstract. Since non-convexity is just the negation of convexity, it will be useful to begin by reviewing the justifications for the latter. This chapter was originally published in The New Palgrave: A Dictionary of Economics, 1st edition, 1987. Edited by John Eatwell, Murray Milgate and Peter Newman. Download reference work entry PDF.
Printed in Austria. Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric. Tests of Convexity. Walter Briec, Kristiaan Kerstens, and Philippe Vanden Eeckaut. Received May 6, 2002; revised version received January 3, 2003 Published online: December 23, 2003. © Springer- Verlag 2003.
Jun 3, 2022 · This chapter presents an overview on the economics of externalities. Relying on Pareto efficiency, the analysis is presented in a general equilibrium framework and evaluates the efficient management of externalities. The investigation also focuses on the role of non-convexity and transaction costs.
