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Pets Suck But Jewelry Rocks - The Best & Worst Gifts (And Gift-Givers) Of Christmas
"Anyone who has studied microeconomics knows... that an income transfer, as opposed to a gift in-kind, gets you to a higher level of utility," but as WSJ reports, putting theory under the tree is another matter. After years of studying the economics of gift-giving, economists have found that some gifts are valued more highly than others, and that some gift-givers seem to be better than others...
Pets appear to be the worst gifts. Travel, the best. The recipients of jewelry and computers seem pretty happy, too.
They also analyzed the best and worst gift-givers.
In fact, as The Wall Street Journal reports, economists’ arguments against presents have deep roots. Some evoke Adam Smith, who espoused rational self-interest, or Milton Friedman, who praised the efficiency of spending money on oneself.
A 1993 paper, “The Deadweight Loss of Christmas,” gave the notion its first real academic ballast. The author, Joel Waldfogel, then at Yale University, calculated yuletide waste by asking 86 students to estimate the cost of presents they received. Average answer: $438.
He asked how much they would have been willing to pay for the same gifts. Average answer: $313. Recipients valued gifts at 71.5 cents on the dollar, a significant economic inefficiency.
Gifts, Mr. Waldfogel wrote, “leave the recipient worse off than if she had made her own consumption choice with an equal amount of cash.”
Since then, economists have enriched the Grinch school of economics.
A 2009 Journal of Socio-Economics paper measured gifts across the holiday catalog, from books (which recipients valued at 74% of the amount spent) to footwear (92%) and kitchen gadgets (77%).
“We find no evidence of significant welfare gains in any gift category,” the paper concluded, calling gifts a “considerable market failure.”
Finally, some scholars have examined which relatives give the worst gifts, economically speaking.
Two economists in 2012 surveyed German students on gifts from relatives and on perceived value.
“The efficiency loss of Christmas presents,” they concluded, “is highest for gifts from grandparents.”
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Bah Bloody Humbug!!
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I prefer just to buy what I need rather than having gifts given to me (and I try to be careful giving gifts).
Gold is my favorite gift to myself. Spending and saving at the same time.
Yes, the fifth day of Christmas is the best.
Bullshit poll. There is no gift greater than a wet marijuana cigarette that was enhanced with PCP or Heroin! God's favorite.
All of the lucky people on my list got the same thing, silver bullion.
So women put 20% less into relationships on average?
Services at 112%. Sound like a good deal.
All I want for Christmas is a good servicing.
It's just that they don't know what we want. They try, but in the end we men tend to end up slightly disabpointed. Women do tend to put more emphasis on "it's the thought that counts" or the "gesture". Men look at gifts like "how am I going to use this?"
I honestly just want replacement tools and parts that I can actually put to utilize all the time.
There'd be some serious negative economic efficiency if someone laced my weed. Said person would require an extended hospital stay.
Where's booze and drugs.....oh and hookers?
i'm in tijuana for christmas
there's plenty of all 3 here!
You can gift me bitcoins, yo spend and save meanwhile save the world <sarcasm>
I am amazed someone made a paycheck doing this analysis.
Federal Grants?
I don't know; a little pet from Thailand could be fun, yes?
I'd like that more then tickets or a piece of jewelry and definitely more then a pair of socks for Christmas.
I wonder the value of sex toys.
Resale value?
Yes, slightly used, or slightly bent.
this is why I give cash
Post Turtle Saver: this is why I give cash.
I gave my nephews a few silver coins each.
nothing wrong with that, +1
I bought my wife a chicken (pet) and sent her into the kitchen (travel) to cook it. Why isn't she happy.........?
You forgot the 25¢ ring (jewellery) from the dispenser on your way out. How could you!?
My grandmother loves to show off her huge zircon ring. All her friends think it's real and are jealous. This is how you win at gift giving. Something cheap that has much more appeal.
One of the best scenes from Donni Brasco the movie is when Al Pacino and Johnny Depp exchange Christmas "presents" -- envelopes of cash. I guess the mob reads the Journal of Socio Economics.
No, The Journal of Sociopathic Economists, although that's mainly redundant.
Penthouse Pets?
Notice that the items appreciated at a value more than cash cost are all luxuries. These are items that the receiver could not justify buying for themself if they had the cash in hand, but really enjoy. At the other end, after pets -- which represent a net COST over the poor creature's lifetime, and therefore should never be imposed on someone as a gift -- the items showing the least value are utilities such as tools, cars, books, kitchen tools, and clothes -- things which people will spend for on their own, after evaluating need vs crave, but for which preferences are very personal and most gift-givers are tone-deaf. At worst, such gifts prevent the receiver from being able to justify spending the money to get what they actually want!
Having unusual values and tastes, I generally find Christmas to be a total loss. I spend money on gifts which, if I'm lucky, my family likes but by no means needs and can easily afford to purchase for themselves if they want. They spend twice as much money buying me things which I seldom like and cannot or will not use. This year my brother leaned heavily for "no presents", and I happily agreed (I was too exhausted from various crises to go shopping anyway). We will both enjoy the extra time and money that comes from NOT playing the game of consumer social one-upmanship.
You can never go wrong gifting a bottle of booze, wine or some treat (which you can even make yourself). It can be enjoyed together and doesn't take away from what a person would buy for themselves.
I re-gifted some home made salsa I got in 2014. It's a little funky. If you spoon off the weird looking fuzz on the top it should be A-OK.
Does that make me a bad person?
No, it's just "matured". You could always add some blended Trinidad moruga scorpion peppers, some white vinegar to throw the pH out of the range of moulds and bacteria and re-bottle as your home made chilli sauce.
Just don't get it on any exposed skin.
I made the mistake of making a Chilli from some of my brother's "Ring of Fire" home made sauce.
...and never, ever, scratch your balls..
You coulda gotten extra brownie points for throwing in an avocado in there to turn it into some holiday guac... you know - Holy Guacamoldy. ;-)
Market it as organic and you are good to go.
I was bought a bottle of whisky, which is a nice gesture in and of itself, but the purchaser doesn't know anything about whisky except that I like it. Now I have a problem. I can't drink it myself, I can't really serve it to friends... All I can really do with it now is use it as an example of the difference between good and bad.
And then there's the christmas pullover...
Don't give me clothes, jewelery, money or an "experience". Basically. Christmas is for the kids.
You got Jack Daniels, didn't you... :-)
you say that like it's a bad thing
Why can't you drink it yourself ??? That time of the month or pregnant ?? Cheers.
Because he's being a booze snob like those little girlie men who compare wines. Like any of you can tell the difference after 3 or 4 lowballs anyway.
Real drinkers just guzzle it outta the bottle anyhow. Like no big deal.
Alcohol? Check :)
That's how I did it. Hammered every single time, no fails
Move over Coffee, this is a job for Alcohol
Why would anybody value anything beyond 100% of its monetary value?
They don't know what it cost.
Jew-elery is for chumps
Screw the gifts. My 13 year old dog does not demand anything and does not give a crap about gifts.
Federal government must have paid for this.
My wife and I don't need anything we we save up and buy each other a trip to Florida, she goes in Febuary and I go in March.
Gift giving, I don't give, I don't accept either. For any occasion. Been like this for years.
the only thing this article proves is that polls and interviews are stupid and retarded and fucktarded.
MERRY CHRISTMAS AND A LOVELY BIRTH OF JESUS TO ALL OF YOU! THE BABY JESUS AND PREGNANT BIRTHING BY HIS MOTHER MARY ARE A LOVELY THING TO CELEBRATE. WHAT A BEAUTIFUL BABY!!!!!!
Who WROTE this article... AIPAC... ??
The whole point of giving Gifts on Christmas is NOT DOLLAR CONSUMPTION EFFICIENCY... it is about honoring the spirit and soul of each other by presenting them with something new to honor their existence and to brighten their Day... Their Year... Their life...
Which is Priceless...
The best gifts I got this year, like every other year, were hugs.
If gifts really are such "market failures" how do such judgements apply to taxes?
I actually offered (but not was not for Christmas) a 925 silver jewelery, she was very happy and wear it day and night since that day.
Spending, making happy my GF and saving in hard material such as Silver and Gold at the same time !