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.

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doi.org/10.1016/j.jebo.2018.10.018, hdl.handle.net/1765/112158
Journal of Economic Behavior & Organization

Heufer, J., & Hjertstrand, P. (2018). Homothetic Preferences Revealed. Journal of Economic Behavior & Organization. doi:10.1016/j.jebo.2018.10.018