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

Micha Gisser, James McClure, Giray Okten and Gary Santoni

Econ Journal Watch, 2009, vol. 6, issue 1, 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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Citations: View citations in EconPapers (3)

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Working Paper: Some Anomalies Arising from Bandwagons that Impart Upward-Sloping Segments to Market Demand (2008)
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