A recent paper by Otis Gilley and Gordon Karels showed that Giffen beh
avior can result from a rationing constraint which provides a second,
lower bound to consumption. This model provides afar wider set of poss
ibilities for uncovering Giffen behavior empirically than simply among
the poor with limited consumption choices among a few staple items. G
iffen behavior of this type can equally well result from the interacti
on of two binding upper constraints to the consumer's choice set. This
is demonstrated with a consumer who experiences local satiation, the
antithesis of the usual setting where Giffen goods are thought possibl
e.