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The majority of gifts, and thus their aggregate, are worth less than their cost to the receiver. This is because if the receiver can afford it and thought it w
by conanbatt 8y ago
The majority of gifts, and thus their aggregate, are worth less than their cost to the receiver.
This is because if the receiver can afford it and thought it was good, he would already have it. Because he doesn't, getting it as a gift is worse than getting money.
Alternative economic interpretation: if you gave someone the choice between item X and money worth X, the gift is good only if the recipient would choose item. If they were to choose the money, then they are always short-changed.
Gifting is economically inefficient.
- gmadsen 8y agoI think you are missing the sentimental aspect of gift giving. It is not purely price/utility value. Emotions attached to gift giving have value for both the giver and the receiver.
- conanbatt 8y agoI feel pretty good giving money away as well!
- Firadeoclus 8y agoThat may be so, but it doesn't generalize to the whole population. > This is because if the receiver can afford it and thought it was good, he would already have it. Assuming they a) know about it and its qualities, b) know how to get it, c) can do so without hassle, and d) truly know what they want and need. Then there are people who hate to choose, but trust certain others to make a good choice for them.