A Class of Symmetric and Quadratic Utility Functions Generating Giffen Demand

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.

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Year of publication:	2014-11
Authors:	Landi, Massimiliano
Institutions:	School of Economics, Singapore Management University

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Published in SMU Economics and Statistics Working Paper Series Number 21-2014 23 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011093401