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

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.

Keywords

• wold-juréen (1953) utility function
• inferior good
• slutsky decomposition
• giffen paradox
• pedagogy