Homothetic Preferences Revealed

Jan Heufer, P Hjertstrand

Research output: Contribution to journalArticleAcademicpeer-review

2 Citations (Scopus)
1 Downloads (Pure)

Abstract

We introduce a method to recover homothetic preferences from choice data with minor optimization or measurement errors. Our method allows for a more detailed graphical analysis to reveal subjects’ preferences and to choose appropriate functional forms for parametric analysis. It has also various other uses such as improving applications of the money metric function or classifying choice data into different preference types. We illustrate some of those approaches using data from an experiment on social preferences.
Original languageEnglish
Pages (from-to)602-614
Number of pages13
JournalJournal of Economic Behavior and Organization
Volume159
DOIs
Publication statusPublished - 19 Nov 2018

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