Gift Giving III: David Friedman’s explanations

This post by David Friedman on the gift giving topic (why people give gifts when simply giving cash instead appears to be the most efficient choice in most cases) is very interesting, hence I add his two explanations to the signalling hypothesis by Greg Mankiw, with the “wild self” connotation by Alex Tabarrok (however it appears that Tabarrok’s wild self ran into trouble subsequently…that’s what happens when you’ve got both a wild self and a wife).
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New life for sale on eBay

This is the final proof that markets function everywhere and in everything. I have blogged before about auctioning favourite restaurant meals and about the free market for beers, but this Aussie beats all that: he sells you a new life (well, obviously his life- the only one he can auction- with all its current advantages and drawbacks, though he concedes that some ‘inherited’ features can be altered in the future, such as the fact that you’d have to start as vegetarian…).
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