In economics and consumer theory, quasilinear utility functions are linear in one argument, generally the numeraire. This utility function has the representation . In two dimensional case, if is concave, this has the interpretation that the indifference curves are parallel; which is useful because the entire utility function can be determined from a single indifference curve.
Read more about Quasilinear Utility: Definition in Terms of Preferences, Quasilinearity in Microeconomics, 2 Common Examples
Famous quotes containing the word utility:
“Moral sensibilities are nowadays at such cross-purposes that to one man a morality is proved by its utility, while to another its utility refutes it.”
—Friedrich Nietzsche (1844–1900)