Working Paper Series, University of Zurich, Department of Economics 187
In a less widely known contribution, Béla Martos (1966, Hungarian Academy of Sciences) introduced a generalized notion of concavity that is closely related to what is nowadays known as r-concavity in the operations research literature, and that is identical to what is nowadays known as r-concavity in the economics literature. The present paper aims at making the original contribution accessible to a wider audience and illustrating its importance from a modern perspective. To this end, we offer a translation of those parts of Martos (1966) that are directly related to generalized concavity. Reviewing the virtues of r-concavity and p-concavity, we find a surprisingly short proof of the univariate Prékopa-Borell theorem. We also survey a number of applications of the considered concepts in operations research and economics.