On the existence of “Giffen goods” again

摘要

Whether Giffen goods exist or not has long been a argument in economics academic circle. This paper analyzes and evaluates the two opposing arguing points represented by Zhang Wuchang and Wang Dingding. At the same time, through analyzing in depth the explanation offered by Hicks Decomposition to Giffen goods in economics textbook, the paper points out that Hicks Decomposition to Giffen goods is against the axiom of Diminishing Marginal Utility, so that Giffen good is not likely to exist in reality.