Simple Utility Functions with Giffen Demand
16 Pages Posted: 24 Jun 2005
Date Written: June 20, 2005
We present some simple utility functions whose Marshallian demand functions possess the Giffen property: at some price-wealth pairs, the demand for a good marginally increases in response to an increase in its own price. The utility functions satisfy standard preference properties throughout the usual consumption set of non-negative bundles: continuity, monotonicity, and convexity.
Keywords: Preferences, Giffen Good
JEL Classification: D11
Suggested Citation: Suggested Citation