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Two conditions which induce Giffen behavior in any numerical analysis if applied to the Wold-Juréen (1953) utility function

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  • Robert SPROULE

    (Bishop’s University, Québec, Canada)

  • Michael KARRAS

    (Bishop’s University, Québec, Canada)

Abstract

The present paper extends the existing literature on the relationship between the Wold- Juréen (1953) utility function and Giffen behavior. This we do by applying two conditions, one of which is due to Sproule (2020). In particular, this paper demonstrates that these two conditions, when taken together, induce the inferior good (Good 1) to exhibit Giffenity. This finding serves to underscore the general perception that the Wold-Juréen (1953) utility function offers both analytical simplicity and much pedagogical value to the definition and to the study of Giffen behavior.

Suggested Citation

  • Robert SPROULE & Michael KARRAS, 2022. "Two conditions which induce Giffen behavior in any numerical analysis if applied to the Wold-Juréen (1953) utility function," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(633), W), pages 197-204, Winter.
    • Handle: RePEc:agr:journl:v:4(633):y:2022:i:4(633):p:197-204
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    References listed on IDEAS

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    1. Landi, Massimiliano, 2015. "A class of symmetric and quadratic utility functions generating Giffen demand," Mathematical Social Sciences, Elsevier, vol. 73(C), pages 50-54.
    2. Moffatt, Peter G., 2002. "Is Giffen behaviour compatible with the axioms of consumer theory?," Journal of Mathematical Economics, Elsevier, vol. 37(4), pages 259-267, July.
    3. Christian E. Weber, 1997. "The Case of a Giffen Good: Comment," The Journal of Economic Education, Taylor & Francis Journals, vol. 28(1), pages 36-44, March.
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    Cited by:

    1. Sproule, Robert, 2023. "The Anomalies Of The Wold-Juréen (1953) Functional Form In Overview," MPRA Paper 117835, University Library of Munich, Germany.

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