If we’re honest, we’d have to admit that sometimes, when giving gifts to others, we take into account the effect on us too. But is that always helpful?
Took a quick look at the paper but I’m not convinced by the argument, or even by the premise (“if it were inefficient, it wouldn’t exist”). Evolution doesn’t optimize for absolute efficiency, but for relative efficiency, within the bounds of the organism’s ability to improve efficiency.
I think neither the standard Waldfogel account (perception mismatch) nor the three I refer to (envy avoidance, reputation restoration, and identity signalling) are incompatible with an are incompatible with evolutionary pressure for efficient solutions.
Discovering someone’s actual preferences is generally awkward and difficult, so we fail or don’t bother. It’s hard to see how hypothetical individuals or groups that somehow were able to obtain that information would be acquiring significantly higher reproductive fitness. In the other three examples, the deadweight loss is a side effect of a different goal than simply maximizing the recipient’s enjoyment.
I'm skeptical for some second order reasons, but I'd really be interested to hear what the authors would say in response.
Counterpoint and a very cool paper:
https://www.cambridge.org/core/journals/journal-of-institutional-economics/article/dynamic-efficiency-of-gifting/FDC663C9C0AC7498C8AD2811CDA77936
Thanks!
Took a quick look at the paper but I’m not convinced by the argument, or even by the premise (“if it were inefficient, it wouldn’t exist”). Evolution doesn’t optimize for absolute efficiency, but for relative efficiency, within the bounds of the organism’s ability to improve efficiency.
I think neither the standard Waldfogel account (perception mismatch) nor the three I refer to (envy avoidance, reputation restoration, and identity signalling) are incompatible with an are incompatible with evolutionary pressure for efficient solutions.
Discovering someone’s actual preferences is generally awkward and difficult, so we fail or don’t bother. It’s hard to see how hypothetical individuals or groups that somehow were able to obtain that information would be acquiring significantly higher reproductive fitness. In the other three examples, the deadweight loss is a side effect of a different goal than simply maximizing the recipient’s enjoyment.