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:	2015
Authors:	Landi, Massimiliano
Published in:	Mathematical Social Sciences. - Elsevier, ISSN 0165-4896. - Vol. 73.2015, C, p. 50-54
Publisher:	Elsevier

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011191145