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**behavior is well understood.Non-convex sets arise also with environmental goods (and other externalities ), and with market failures, and public economics. Non-convexities occur also with information economics, and with stock markets (and other incomplete markets ).

**Convexity**is an important topic in**economics**. In the Arrow–Debreu model of general**economic**equilibrium, agents have**convex**budget sets and**convex**preferences: At equilibrium prices, the budget hyperplane supports the best attainable indifference curve. The profit function is the**convex**conjugate of the cost function.**Convex**analysis is the standard tool for analyzing textbook**economics**. Non‑convex phenomena in**economics**have been studied with nonsmooth analysis, which generalizes**convex**...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**behavior is well understood.Non-convexity (

**economics**), violations of the convexity assumptions of elementary**economics**Obtuse angle Disambiguation page providing links to topics that could be referred to by the same search termPeople also ask

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In

**economics**,**non-convexity**refers to violations of the**convexity**assumptions of**elementary economics**.Talk:

**Non-convexity**(**economics**) This article is within the scope of**WikiProject Mathematics**, a collaborative effort to improve the coverage of Mathematics on**Wikipedia**. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.Main article:

**Non-convexity**(**economics**) See also:**Shapley–Folkman lemma**When consumer preferences have**concavities**, then the linear budgets need not support equilibria: Consumers can jump between allocations.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**behavior is well understood.Non‑convex sets have been incorporated in the theories of general

**economic**equilibria, of market failures, and of public**economics**. These results are described in graduate-level textbooks in microeconomics , [7] general equilibrium theory, [8] game theory , [9] mathematical**economics**, [10] and applied mathematics (for economists). [11]