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General Form of a Quasi-Linear Utility Function
The general mathematical expression for a quasi-linear utility function is . In this form, represents a particular good (or a 'bad' if it negatively impacts utility), and represents an individual's income that is spent on other goods. The function is termed 'quasi-linear' because it is linear with respect to income () but typically non-linear concerning good . This functional form has the important property that the marginal utility of good is independent of income. For the preferences to be considered well-behaved, must be an increasing function, so its first derivative must be positive (), and it is generally assumed to be concave.
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