Consumption externalities and upward-sloping demand

David W. K. Yeung

doi:10.1007/BF02297957

Consumption externalities and upward-sloping demand

David W. K. Yeung

Research output: Contribution to journal › Journal article › peer-review

1 Citation (Scopus)

Abstract

The law of demand states that individual demand curves are negatively sloped. To date, the Giffen Paradox represents the only analytically valid exception to the law under standard assumptions. This article shows that if consumption externalities exist, it is possible for the individual's demand curve to slope upward. In particular, the condition under which demand becomes upward-sloping can be delineated in terms of measures of elasticity of demand. (JEL D11, D62).

Original language	English
Pages (from-to)	196-200
Number of pages	5
Journal	International Advances in Economic Research
Volume	8
Issue number	3
DOIs	https://doi.org/10.1007/BF02297957
Publication status	Published - Aug 2002
Externally published	Yes

Scopus Subject Areas

Economics and Econometrics
Economics, Econometrics and Finance(all)

User-Defined Keywords

Economic Growth
International Economic
Demand Curve
Standard Assumption
Demand State

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/BF02297957

Cite this

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title = "Consumption externalities and upward-sloping demand",

abstract = "The law of demand states that individual demand curves are negatively sloped. To date, the Giffen Paradox represents the only analytically valid exception to the law under standard assumptions. This article shows that if consumption externalities exist, it is possible for the individual's demand curve to slope upward. In particular, the condition under which demand becomes upward-sloping can be delineated in terms of measures of elasticity of demand. (JEL D11, D62).",

keywords = "Economic Growth, International Economic, Demand Curve, Standard Assumption, Demand State",

author = "Yeung, {David W. K.}",

note = "Funding Information: Consider the case when the individual's demand for a good depends on price and aggregate quantity demanded. In particular, the quantity demanded by individual i is specified as: *Hong Kong Baptist University--Hong Kong and St. Petersburg State University--Russia. Research grants (Grant ~2056/99H and Grant ~FRG99-00/II-12) from the Research Grant Council of Houg Kong and the Hong Kong Baptist University are gratefully acknowledged.",

year = "2002",

month = aug,

doi = "10.1007/BF02297957",

language = "English",

volume = "8",

pages = "196--200",

journal = "International Advances in Economic Research",

issn = "1083-0898",

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AU - Yeung, David W. K.

N1 - Funding Information: Consider the case when the individual's demand for a good depends on price and aggregate quantity demanded. In particular, the quantity demanded by individual i is specified as: *Hong Kong Baptist University--Hong Kong and St. Petersburg State University--Russia. Research grants (Grant ~2056/99H and Grant ~FRG99-00/II-12) from the Research Grant Council of Houg Kong and the Hong Kong Baptist University are gratefully acknowledged.

PY - 2002/8

Y1 - 2002/8

N2 - The law of demand states that individual demand curves are negatively sloped. To date, the Giffen Paradox represents the only analytically valid exception to the law under standard assumptions. This article shows that if consumption externalities exist, it is possible for the individual's demand curve to slope upward. In particular, the condition under which demand becomes upward-sloping can be delineated in terms of measures of elasticity of demand. (JEL D11, D62).

AB - The law of demand states that individual demand curves are negatively sloped. To date, the Giffen Paradox represents the only analytically valid exception to the law under standard assumptions. This article shows that if consumption externalities exist, it is possible for the individual's demand curve to slope upward. In particular, the condition under which demand becomes upward-sloping can be delineated in terms of measures of elasticity of demand. (JEL D11, D62).

KW - Economic Growth

KW - International Economic

KW - Demand Curve

KW - Standard Assumption

KW - Demand State

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DO - 10.1007/BF02297957

M3 - Journal article

AN - SCOPUS:77949756804

SN - 1083-0898

VL - 8

SP - 196

EP - 200

JO - International Advances in Economic Research

JF - International Advances in Economic Research

IS - 3

ER -

Consumption externalities and upward-sloping demand

Abstract

Scopus Subject Areas

User-Defined Keywords

UN SDGs

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