Biased quantitative measurement of interval ordered homothetic preferences

Marc Le Menestrel () and Bertrand Lemaire

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We represent interval ordered homothetic preferences with a quantitative homothetic utility function and a multiplicative bias. When preferences are weakly ordered (i.e. when indifference is transitive), such a bias equals 1. When indifference is intransitive, the biasing factor is a positive function smaller than 1 and measures a threshold of indifference. We show that the bias is constant if and only if preferences are semiordered, and we identify conditions ensuring a linear utility function. We illustrate our approach with indifference sets on a two dimensional commodity space.

Keywords: Weak order; semiorder; interval order; intransitive indifference; independence; homothetic; representation; linear utility (search for similar items in EconPapers)
JEL-codes: D00 D11 D21 O22 (search for similar items in EconPapers)
Date: 2004-07
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:789

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