This is a news article from The Economist, published in December 2009, that examines the economic concept of deadweight loss as it applies to the tradition of Christmas gift-giving.

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This theory suggests that a deadweight loss can occur from gift-giving when a recipient values a gift less than its actual cost. [1, 2, 4] In such a scenario, it can be argued that the surplus from the transaction is negative, raising questions about the economic efficiency of this social custom. [10]

Deadweight Loss from Gift-Giving

To cite the ebook, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/.

To cite a unit, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/ Unit [unit number] (url).

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