flying sola

The Economics, Psychology and Theology of Gift Giving- The Gift Says More About the Giver

In the Washington Post (Sunday, Dec. 10, 2006) article, Did the Three Kings Bear Gift Receipts?, Kevin Hassett examines gift giving from an economist’s point of view.

He discovers that an economist would say that gift giving is a completely inefficient way of celebrating Christmas. They would claim that a person knows what they want better than you do, and they would point to studies which have confirmed that people prefer their own choice as opposed to the gifts they received anywhere from 10 to 33 percent. Thus, one could say that up to 33 percent of the money spent this Christmas season is money wasted. Using figures provided by the National Retail Foundation, that could mean an annual loss of $152 billion suffered by American consumers this year. Politicians argue tooth and nail how to save Americans $152 billion through tax breaks, etc., It seems that an economist would not be out of order to suggest the banning of gift giving as a responsible law to help American’s financial situations.

What economists, however, don’t take into account, however, is the psychology of gift giving. Hassett describes a study by Nobel Prize winner Daniel Kahneman published in 1990 explaining:

“Students at Simon Fraser University in Canada were given coffee mugs from the college bookstore and then asked whether they would sell the mugs at prices ranging from 25 cents to $9.25. A second group was asked whether they would buy a mug at the same prices. Those who received the gifts were possessive of their new treasures, and were coaxed into giving them up only at prices above $7.12. But those who did not receive the mugs as gifts found them unattractive and were willing to buy them only if they cost less than $3.12. The $4 difference is attributed to the psychological value of a gift. The recipient experienced a thrill when he or she received the mug, which became the apple of their eye. Those who were offered a chance to buy a mug experienced no such thrill.

Hassett concludes: First, you shouldn’t fret too much about the likely success of your gifts. College students are a noticeably unsentimental lot. If they become emotionally attached to mugs from the college bookstore, given to them in an experimental setting, imagine how much value a wife may attach to a gift from a beloved spouse, regardless of its exact nature.

Second…the frankincense and myrrh probably generated a textbook response in Mary and Joseph….like the mug-loving college students, Mary and Joseph must have been enormously attached to their presents. According to legend, the poor carpenter and his wife never sold the valuable gifts, despite the family’s financial needs. To this day, a case that purportedly contains the gifts of the magi is on display at a monastery in Greece. If the gifts truly were preserved for all time, it is probably because the human response to Christmas gifts has changed little since that first night.

I was listening to this article being discussed on Public Radio and found it quite intriguing, but the best part was when a caller called in to respond to the question- “what would you rather receive, a gift or money?” The caller ademately said that a gift is better because the gift says “I consider you worth spending time and effort on”- it shows that the giver cares. In fact, the caller stated, the gift says more about the giver than it does about the one who receives the gift.

What a great theological statement!

Let’s consider the gift we celebrate each Christmas- the gift of Christ. The gift of Christ, certainly does say something about those who receive Him- namely that we are sinners in need of a Savior! But it says much more about the Father who sent Him.

John Frame provides a wonderful meditation on God’s gift to us and what it teaches about Him in an article entitled The Wonder of God Over Us and With Us. Read it here.

Frame says: Christmas reveals in a wonderful way that God acts in time as well as above it. It shows us wonderfully how God relates to us, not only as a mysterious being from another realm, but as a person in our own time and place: interacting with us, hearing our prayers, guiding us step by step, chastising us with fatherly discipline, comforting us with the wonderful promises of the blessings of Christ. Truly He is Immanuel, the God who is really with us, who is nonetheless eternally the sovereign Lord of all.

Truly this bespeaks a very Merry Christmas!