I provide a simple example of a single peaked utility function that generates a Giffen demand. The utility function is smooth, non piecewise defined, strictly concave but not globally increasing. A full characterization of the parameter conditions under which the Giffen demand arises is provided. In addition the properties of the demand function are studied: I find that the inferior commodity with a Giffen demand must be cheaper relatively to a substitute and that Giffen demand arises at relatively low levels of income. However it is not required that the share of income spent on that commodity be large.
Giffen behavior, Utility function, Single peakedness, Expenditure share
Single Peakedness and Giffen Demand. (2012). Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/1324
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