The holiday season is running fast and has shown an impressive delay in Christmas shopping for loved ones, even by his own standards. There was panic. They don’t know what to get from these people on their list and they won’t tell them. Apparently, you value this proof of your creativity, consideration, and understanding of your likes and dislikes. The following happened: Donate money or buy one of these gift cards at the local grocery store, located on the large shelf next to Detrident’s rubberized display.
When choosing gift cards instead of cash, most traditional economists turned to cash and ended a Ben Franklin or Thomas Jefferson (depending on generosity) with a nice Christmas greeting. and these animal spirits go their way with him.
However, I want to offer a behavioral argument for gift cards from the recipient’s perspective. I’ve always wondered why I’d rather get gift cards for places like Amazon than money, and after thinking about that feeling for a while, I understand why.
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The argument goes like this: Suppose there are three things that are important to me: 1) Assign my resources responsibly to things like food and clothing for my children and save for college education. 2) Donate money for reckless and relatively useless items; and 3) feeling guilty that you spent money on (2) instead of (1).
Now consider that I am receiving a gift worth $ 100. If I gave a gift worth $ 100 to buy a drone, reckless spending would be fun. But if I spent all the money on myself, I would feel guilty if I had forgiven (see point 3 above). The truth is, if I got $ 100 in cash, I’d probably spend more on responsible things like feeding and dressing my kids and saving for college, and I’d get $ 20 with the gift of four. big ribbons fly. It is mocha for me and only me, and I would not feel guilty because what I prepared was more than compensated for my responsible work.
But here are the wonderful features of getting the gift card. If I receive a gift card, I can eat my cake to save the behavior and eat it too. The gift card forces me to buy things for myself on Amazon, which is my first choice in many ways, but someone made this decision for me, so I don’t feel guilty. In other words, at least for me, and I think that many people like me who receive the gift card and fees without any debt go beyond the greatest “freedom” I have with a gift. Money. The gift card miracle does not make me guilty, nor does the blame transfer to the donor. The guilt disappears as if by magic.
However, as psychologist Ron Kivetz describes, many of us suffer from clairvoyance or “excessive prospects and future preferences.” Simply put, these are generally responsible people who never bother having fun or spending money on themselves.