Homothetic preferences

id: homothetic-preferences-265-6770772
title: Homothetic preferences
text: In consumer theory, a consumer's preferences are called homothetic if they can be represented by a utility function which is homogeneous of degree 1. For example, in an economy with two goods x , y , homothetic preferences can be represented by a utility function u that has the following property: for every a > 0 : In mathematics, a homothetic function is a monotonic transformation of a function which is homogeneous; however, since ordinal utility functions are only defined up to an increasing m
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original url: https://en.wikipedia.org/wiki/Homothetic_preferences
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date modified: 2023-08-12T16:43:07Z
main entity: {"identifier":"Q5891796","url":"https://www.wikidata.org/entity/Q5891796"}
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