Homothetic preferences revealed

Arbeitspapier

We propose 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 can also be used to extend applications of the money metric function, such as parametric recoverability as introduced by Halevy et al. (2017). It can also improve nonparametric comparison of preferences as suggested by Heufer (2014).

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 1187

Classification and Topics

• Classification: Wirtschaft ; Semiparametric and Nonparametric Methods: General ; Design of Experiments: Laboratory, Individual ; Consumer Economics: Theory ; Consumer Economics: Empirical Analysis
• Subject: Graphical Analysis ; Homotheticity ; Money Metric Utility ; Recoverability ; Revealed Preference

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Heufer, Jan ; Hjertstrand, Per
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/183416