We’ve blogged about this Yuletide topic on a previous occasion, but now check out the enormously entertaining and enlightening video below in which our friends and colleagues Tyler Cowen and Alex Tabarrok, both of whom teach economics at George Mason University, debate the economics of gift giving:
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My family uses a site called giftster.com. You create a group. Each member lists many things they would like. You can include sizes, colors, price, places to shop-even a link to the item. You can describe things you don’t want – like no more socks or lotions! Members of the group reserve items to purchase for other members so someone doesn’t get the item twice. You can see what others purchased for other members of the group, but you can’t see what people purchased for you. It takes some of the surprise out of the gift, but not all. Also, you are getting items you don’t want.
That website eliminates many of the “deadweight losses” generated by Christmas. Thanks for the pointer!