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According to The Economist (2001), in order to ensure that the gift bought is successful, the buyer has to ensure that they are well aware of the receiver’s preferences. The article argues that, at the simplest level, offering gifts involves the provider considering something,…
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Download file to see previous pages... According to The Economist (2001), if the giver offered the cash value of the receiver to buy the gift instead of giving the gift itself, the receiver could then purchase what she truly wants, and be happier for no extra cost. The article reached this finding by asking two university students of whether the valued the gift that were offered to them during the past Christmas period. The most conventional approximation put the standard receivers valuation at 90 percent of the buying price (The Economist, 2001). The missing 10 percent is what economists refer to as deadweight loss: a waste of resources, which could be avoided without making anybody worse off.
Non-money gifts from extended family members were discovered to be least efficient. The most efficient/appreciated gifts, also those with the least deadweight loss, were considered to be those from close relations and friends, whereas non-cash gifts from normal family members “extended family” were considered to be the least efficient (The Economist, 2001). As the age disparity between the provider and beneficiary grew, so did the ineffectiveness of the gift. All of which propose what a lot of grandparents discern: when purchasing gifts for an individual with fundamentally unidentified preferences, the best gift is one, which is entirely flexible, such as money cash, or very supple, such as gift vouchers (The Economist, 2001).
This article argues that giving a gift of value not only good for the receiver, but the provider, as well. People buy a gift to please the receiver, and when the receiver is pleased, there is a mutual feeling in the giver too. I remember the first time is spent a valentine’s day with my girlfriend that I had to save plenty of cash to get her a pair of doll shoes that she had been admiring a lot. The shoes cost me $60, but the moment I saw the smile in her face when I gave them to her, the amount of money was insignificant. It ...Download file to see next pagesRead More
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