On Giffen-like goods

This paper provides, as a counter example to the Alchian-Allen theorem, a theory of Giffen-like goods: a per unit charge to two similar goods raises the relative price of the lower quality good and yet increases the (relative) demand of the good.

► This paper concerns a counter example to the Alchian-Allen theorem. ► We introduce a household production framework. ► We also extend the logic of Samuelson's paradox of complementarity.