The paradoxical aspect of the Giffen Paradox is the inability of demand theory to explain why Giffen goods are apparently so rare. The resolution of the paradox arises from the distinction between the shape of market demand curves and the sequence of equilibrium prices that will be observed in markets in which quantity supplied changes. The sense in which the Giffen case is "unlikely" to occur is that the probability of identifying a Giffen good is less than the probability that such a good exists.

The paradoxical aspect of the Giffen Paradox is the inability of demand theory to explain why Giffen goods are apparently so rare. The resolution of the paradox arises from the distinction between the shape of market demand curves and the sequence of equilibrium prices that will be observed in markets in which quantity supplied changes. The sense in which the Giffen case is "unlikely" to occur is that the probability of identifying a Giffen good is less than the probability that such a good exists.

Arthur S. De Vany, Thomas R. Saving, Life-Cycle Job Choice and the Demand and Supply of Entry Level Jobs: Some Evidence from the Air Force, The Review of Economics and Statistics, Vol. 64, No. 3 (Aug., 1982), pp. 457-465

In a previous study reported here Moriarity and Barron [1976] used conjoint measurement to model the materiality judgment process of audit partners. They did so following the approach suggested by Krantz and Tversky [1971] in which axiomatic conjoint measurement (ACM) is used to identify the functional form of the decision maker's judgment model, and then numerical conjoint measurement (NCM) is applied to find the best-fitting scale values (part-worth functions).' Shortly thereafter, the American Accounting Association's Committee on Human Information Processing (AAA [1978]) suggested that conjoint measurement would be useful in the study of certain aspects of human information processing in accounting research, particularly for testing alternative composition rules which uses only ordinal properties of the data [1978, p. 32]. Composition rules refer to the functional forms (e.g., additive, multiplicative, etc.) of decision makers' judgment models.2 In a later paper, Moriarity and Barron [1979] examined the preaudit materiality judgments of audit partners, in which they assumed an additive model and used a holistic orthogonal parameter estimation procedure (Barron and Person, [1979]). Swieringa [1979] criticized this

The time path of asset prices is studied within a stationary experimental environment. After several replications prices converge to a perfect foresight equilibrium. A sequential market having an "informational trap" and a futures market are also studied.

Ronald R. Braeutigam, Andrew F. Daughety, Mark A. Turnquist, The Estimation of a Hybrid Cost Function for a Railroad Firm, The Review of Economics and Statistics, Vol. 64, No. 3 (Aug., 1982), pp. 394-404

Reviews the book "Contemporary Managerial Accounting: A Casebook," by John Shank.