In economics, a consumer is said to have homothetic preferences when its preferences can be represented by a homothetic utility function. Both homogeneous and homothetic preferences are common functional forms used to represent consumer preferences when analyzing the demand for consumption of various goods and services. A homothetic function is a ...
Found on
http://en.wikipedia.org/wiki/Homothetic_preferences
Together with identical preferences, this assumption is used for many propositions in trade theory, in order to assure that consumers with different incomes but facing the same prices will demand goods in the same proportions.
Found on
http://www-personal.umich.edu/~alandear/glossary/h.html
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