Date of Award
2007
Document Type
Thesis
Publication Status
Version of Record
Submission Date
October 2026
Thesis/Dissertation Advisor [Chair]
Van Tassel, Eric
Abstract
The key objective of this thesis is to explain how aggregate agent investment behavior, in the presence of a Giffen Good, leads to excess market volatility. The thesis relies on two microeconomic models. The first model demonstrates how, in the presence of a Giffen Good, the demand curve is discontinuous and upward sloping. By analyzing the demand curve, price regions of potential volatility are identified. Using the first model as a foundation, a second model is introduced in which a speculator trades in a dynamic setting. In this dynamic framework, opportunities for profit making by the speculator are identified. The speculative behavior aggravates market volatility.
Extent
49 p.
Recommended Citation
Fiske, Brian, "Juicing the Potato: The Giffen Effect and Market Volatility" (2007). Electronic Theses and Dissertations 2000 - 2009. 1290.
https://digitalcommons.fau.edu/etd_general_5/1290
Identifier
FA00000302
Comments
Thesis (M.S.)--Florida Atlantic University, 2007.|College of Business|FAU Electronic Theses and Dissertations Collection|Thesis (M.S.)--Florida Atlantic University, 2007.