Is Giffen behaviour compatible with the axioms of consumer theory?

Peter G. Moffatt

doi:10.1016/S0304-4068(02)00033-2

Is Giffen behaviour compatible with the axioms of consumer theory?

Peter G. Moffatt

Research output: Contribution to journal › Article › peer-review

19 Citations (Scopus)

Abstract

A family of direct utility functions is constructed which exhibit the characteristic of Giffenity, while satisfying the axioms of convexity and monotonicity. The approach starts by specifying a price offer curve, C₀, with a required backward-bending segment. Then a set of convex indifference curves is constructed having price offer curve arbitrarily close to C₀.

Original language	English
Pages (from-to)	259-267
Number of pages	9
Journal	Journal of Mathematical Economics
Volume	37
Issue number	4
DOIs	https://doi.org/10.1016/S0304-4068(02)00033-2
Publication status	Published - 2002

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10.1016/S0304-4068(02)00033-2

Cite this

@article{77c7b1da1b0e4ba5ba99a658a69d8116,

title = "Is Giffen behaviour compatible with the axioms of consumer theory?",

abstract = "A family of direct utility functions is constructed which exhibit the characteristic of Giffenity, while satisfying the axioms of convexity and monotonicity. The approach starts by specifying a price offer curve, C0, with a required backward-bending segment. Then a set of convex indifference curves is constructed having price offer curve arbitrarily close to C0.",

author = "Moffatt, {Peter G.}",

year = "2002",

doi = "10.1016/S0304-4068(02)00033-2",

language = "English",

volume = "37",

pages = "259--267",

journal = "Journal of Mathematical Economics",

issn = "0304-4068",