When gifts are worth less to the recipient than the giver, the economy experiences deadweight loss and an “orgy of value destruction.”…
Behavioral Economics: The Best Gifts
A gift can be worth much more or less than its price tag. It just depends on whether you are the giver or the receiver. One of the best gifts I have ever gotten was a book of car wash coupons. Happily…
Holiday Dilemmas
Can doing good be bad? At food banks, the holiday season brings an avalanche of food from donors when the charity could purchase the food more cheaply and use volunteer time more wisely. As a result, …
Giving and Getting Gifts
With the holiday season beginning, we should consider the economics of gift giving. Let’s start with University of Pennsylvania Professor Joel Waldfogel who focused on receiving gifts. Then, thr…