Consumer Choice & Behavioral

Giving Cheap Gifts

Cheyenne gives Dina a gift to thank her for being a bridesmaid, but Dina thinks it’s just cheap jewelry that one of her birds might eat. She asks Cheyenne to return the gift and to just give her cash instead. The inefficiency of gift giving occurs when purchases of gifts spend more money on an item for someone than that person would be willing to spend if they had purchased the item themselves.