Homothetic preferences

Summary

• We say that preferences are homothetic if the following holds:

$$\left( x_1,x_2 \right)≽\left( y_1,y_2 \right)⟺\left( cx_1,cx_2 \right)≽\left( cy_1,cy_2 \right)$$

• for all constants $c>0$ .