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Giffen behavior and duality from the viewpoint of the relation between the shapes of price indifference and indifference curves

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  • Masaki Fujimoto

    (Kindai University)

Abstract

This paper presents the two relations between the shapes of price indifference and indifference curves. The first relation between the geometric conditions for Giffenity implies that one curves fan out in the downward direction if and only if the other curves fan out in the upward direction. The second relation implies that the more sharply one curve bends, the flatter the other curve becomes and as the two goods become better complements (substitutes), their prices become better substitutes (complements).

Suggested Citation

  • Masaki Fujimoto, 2022. "Giffen behavior and duality from the viewpoint of the relation between the shapes of price indifference and indifference curves," SN Business & Economics, Springer, vol. 2(11), pages 1-20, November.
    • Handle: RePEc:spr:snbeco:v:2:y:2022:i:11:d:10.1007_s43546-022-00341-z
    DOI: 10.1007/s43546-022-00341-z
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    References listed on IDEAS

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    1. McFadden, Daniel, 1978. "Cost, Revenue, and Profit Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.),Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 1, McMaster University Archive for the History of Economic Thought.
    2. Kris De Jaegher, 2009. "Asymmetric Substitutability: Theory And Some Applications," Economic Inquiry, Western Economic Association International, vol. 47(4), pages 838-855, October.
    3. Kohli, Ulrich, 1985. "Inverse demand and anti-giffen goods," European Economic Review, Elsevier, vol. 27(3), pages 397-404.
    4. Vandermeulen, Daniel C, 1972. "Upward Sloping Demand Curves Without the Giffen Paradox," American Economic Review, American Economic Association, vol. 62(3), pages 453-458, June.
    5. Samuelson, Paul A, 1969. "Corrected Formulation of Direct and Indirect Additivity," Econometrica, Econometric Society, vol. 37(2), pages 355-359, April.
    6. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    7. Sato, Ryuzo, 1976. "Self-Dual Preferences," Econometrica, Econometric Society, vol. 44(5), pages 1017-1032, September.
    8. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    9. Masako N. Darrough & Clive Southey, 1977. "Duality in Consumer Theory Made Simple: The Revealing of Roy's Identity," Canadian Journal of Economics, Canadian Economics Association, vol. 10(2), pages 307-317, May.
    10. P. G. Moffatt & H. K. Moffatt, 2014. "Giffen Goods and their Reflexion Property," Manchester School, University of Manchester, vol. 82(2), pages 129-142, March.
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    Cited by:

    1. Bondita Robidas & Subrata Borgohain Gogoi, 2024. "Economic analysis of transportation of crude oil of Upper Assam Basin through pipeline," SN Business & Economics, Springer, vol. 4(8), pages 1-30, August.

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    More about this item

    Keywords

    Consumer theory; Duality; Giffen behavior; Price indifference curve; Indifference curve;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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