The Economics of Gifts and Giving
Cash Versus Gift Cards Versus Things
Different forms of gifts have different costs, signals and uses, from envelopes of cash at weddings to vouchers and personalised items.
What form should a gift take?
Cash
In India, shagun envelopes are a standard wedding gift.
Gift cards
Vouchers offer choice, and some are never fully used, called breakage.
Personal items
Thoughtful, personalised gifts signal care.
Trade-offs
Convenience, control and emotional value differ.
A voucher
A colleague gets a shopping voucher, choosing something she wants.
Assuming cash is always the best gift
Social norms shape what is appropriate.
Key takeaways
- Cash is common at weddings.
- Gift cards offer choice.
- Breakage benefits sellers.
- Personalisation signals care.
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