Quasi-linear preferences

Summary

• Quasi linear utility function

$$u\left( x_1,x_2 \right)=v\left( x_1 \right)+x_2$$

• where $v$ is an arbitrary function (strictly increasing if good 1 is desired).
• Quasilinear preferences: preferences that can be represented by a quasi linear utility function
• Indifference curves are vertical (or horizontal) translates

• Indifference curve for utility $u_0$ : $x_2=u_0-v\left( x_1 \right)$