Social Approval as a Motivation to Give
نویسنده
چکیده
The aim of this paper to explain gift-giving by means of social approval. In a simple framework we are able to account for a number of stylized facts. These are that gift-giving is often reciprocal, that gifts tend to be inadequate, and that gift-giving is sometimes reduced after a monetary compensation is o¤ered. The implication for the interaction between gift-giving and the market institution is that implementing price incentives in a non-market environment can have welfare decreasing unintended consequences.
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