Gifts and guilt
In a now famous 1993 paper the economist Joel Waldfogel attempted to calculate the economic deadweight-loss caused by giving Christmas presents. His argument was that money spent by a gift-giver on a present would usually have been better spent by the recipient, since the recipient would have a better idea of his own needs and preferences than the person choosing the present. Waldfogel’s most generous estimate rated the ‘efficiency’ of a Christmas present no higher than 90 per cent — so the typical gift was about 90 per cent as valuable as if you had given someone an equivalent amount in cash and allowed him to spend it on himself. He calculated that every year in the United States alone billions of dollars of value were squandered through the exchange of presents.