Goods you were already consuming becoming more valuable to you does not cause your purchasing power to increase.
If the price going up makes the good more valuable and thus makes you buy less of it so you achieve the same effect, it's not a Veblen good. The price of Veblen goods going up makes you buy more of them to achieve a bigger effect.
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yes veblen goods have to get more efficient as price goes up, and giffen have to get less. which is why you can't have both.
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Giffen goods do not need to get less efficient as price increases.
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yes they do or you just buy less
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You mentioned rice as prototypical Giffen good. In what sense does increasing the price of rice make rice less efficient? It certainly does not change the nutritional attributes of the rice.
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right, it's the same rice for more money, hence less efficient.
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Oh, I see. I think you are conflating high value with high diminishing marginal returns. As prices of each rise, value/$ spent on Veblen goods rises, and it takes more $ to reach diminishing marginal returns on Giffen goods. These effects are not in conflict.
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the Giffen paradox is about the income effect. if your value/$ spent is going up, the income effect is in the wrong direction
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when the price of a veblen good goes up people buy more of it because it's a better deal. people getting better deals are richer not poorer
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