Some Anomalies Arising from Bandwagons that Impart Upward Sloping Segments to Market Demand

Micha Gisser, James E. McClure, Giray Okten () and Gary Santoni ()
Additional contact information
Micha Gisser: University of New Mexico
Giray Okten: Florida State University
Gary Santoni: Ball State University

Econ Journal Watch, 2009, vol. 6, issue 1, pages 21-34

Abstract: In Gary Becker’s (1991) theory of bandwagon effects, a portion of market demand is positively sloped. In this, he ignores Harvey Leibenstein’s (1950) hypothesis that market demands for bandwagon goods are everywhere negatively sloped (stemming from scarcity imposed constraints). A substantial literature now invokes Becker’s bandwagon, also ignoring Leibenstein. Two anomalies attend Becker’s bandwagon demand when it slopes upward: 1) straightforward parameterizations are inconsistent with the economic requirement that quantities demanded be non-negative; 2) regardless of parameterization, the comparative statics of Becker’s demand carry unworldly implications.

Keywords: bandwagon effect; law of demand (search for similar items in EconPapers)
JEL-codes: D01 D40 D62 (search for similar items in EconPapers)
Date: 2009
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Related works:
Working Paper: Some Anomalies Arising from Bandwagons that Impart Upward-Sloping Segments to Market Demand (2008)
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