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Just Shoot Me

Bala, 28, Gordon Gekko in the making, pseudo-intellectual, cynic, bibliophile, obsessive compulsive ranter...

Matriculation schools as a Giffen Good

April 10, 2008

A Giffen Good is something (product or service) whose demand increases with its' price. The Wikipedia article suggests they are extremely rare. A recent talk with a colleague who is much enamored of "Engileees medium education", has given me the idea that seats in Matriculation schools of Tamil Nadu might be Giffen Goods.

The wikipedia article provides three necessary preconditions for something to be considered as a Giffen good.

1. the good in question must be an inferior good
considering all the shit they do in the name of teaching this seems to fit.

2. there must be a lack of close substitute goods

Hmmm, Most of the Govt and Govt aided schools are even worser than Matriculation schools; CBSE and ICSE schools are scarce..

3. the good must constitute a substantial percentage of the buyer's income, but not such a substantial percentage of the buyer's income that none of the associated normal goods are consumed

This is much closer to reality than it looks.

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posted by Bala, 11:37 PM

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