Convex Preferences

Convex preferences refer to a concept in economics that describes how individuals choose between different options, like goods or services. When preferences are convex, it means that people prefer a balanced mix of options over extreme choices. For example, if you like both apples and oranges, you might prefer a combination of the two rather than just a large quantity of one type. This reflects a tendency toward diversity and moderation in choices, suggesting that as you consume more of one good, you value additional units of it less compared to having a variety.