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ISRN Economics
Volume 2012 (2012), Article ID 608645, 4 pages
http://dx.doi.org/10.5402/2012/608645
Research Article

A Convenient Utility Function with Giffen Behaviour

Department of Social Sciences, Wageningen University and Research Centre, P.O. Box 8130, 6700 EW Wageningen, The Netherlands

Received 22 August 2012; Accepted 19 September 2012

Academic Editors: C. Fluet and T. Kuosmanen

Copyright © 2012 Rein Haagsma. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The paper proposes a simple utility function that can generate Giffen behaviour. The function suggests an alternative direction where Giffen behaviour can be found and also implies a convenient framework for empirical testing. Moreover, because of its simple form, the utility function is well-suited for teaching purposes.