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convexity in economics
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 analysis.〔
==Preliminaries==
The economics depends upon the following definitions and results from convex geometry.
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