DP11293 Quasi-Linear Integrability

Author(s):	Volker Nocke, Nicolas Schutz
Publication Date:	May 2016
Keyword(s):	duality, integrability, quasi-linear demand
JEL(s):	D11
Programme Areas:	Industrial Organization
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=11293

Applied researchers often work with demand systems that do not depend on income, with the implicit assumption that preferences are quasi-linear and income sufficiently large. The classic approach to the integrability of demand does not readily apply in this case. Adopting a much simpler approach that is based on Poincarés Lemma and duality, we provide necessary and sufficient conditions for the quasi-linear integrability of such demand systems. We also derive results on the associated utility function and its domain.