Simple Utility Functions with Giffen Demand

16 Pages Posted: 24 Jun 2005

See all articles by Peter Norman Sorensen

Peter Norman Sorensen

University of Copenhagen - Department of Economics

Date Written: June 20, 2005

Abstract

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

Sorensen, Peter Norman, Simple Utility Functions with Giffen Demand (June 20, 2005). Available at SSRN: https://ssrn.com/abstract=747244 or http://dx.doi.org/10.2139/ssrn.747244

Peter Norman Sorensen (Contact Author)

University of Copenhagen - Department of Economics ( email )

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HOME PAGE: http://www.econ.ku.dk/sorensen

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