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A Class of Symmetric and Quadratic Utility Functions Generating Giffen Demand

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  • Massimiliano Landi

    (Singapore Management University)

Abstract

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.

Suggested Citation

  • Massimiliano Landi, 2014. "A Class of Symmetric and Quadratic Utility Functions Generating Giffen Demand," Working Papers 21-2014, Singapore Management University, School of Economics.
    • Handle: RePEc:siu:wpaper:21-2014
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    References listed on IDEAS

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    11. Wim Heijman & Pierre Mouche, 2012. "A Child Garden of Concrete Giffen Utility Functions: A Theoretical Review," Lecture Notes in Economics and Mathematical Systems, in: Wim Heijman & Pierre Mouche (ed.), New Insights into the Theory of Giffen Goods, pages 69-88, Springer.
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