Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7373514 | Mathematical Social Sciences | 2015 | 5 Pages |
Abstract
I provide a simple example of a quadratic utility function that generates a Giffen demand. The utility function is symmetric, increasing and concave. Interestingly, the Giffen effect arises in the subspace where the utility function is strictly increasing and strictly concave. A full characterization of the parameter conditions under which the Giffen demand arises is provided.
Related Topics
Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
Massimiliano Landi,