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The Demand for Social Approval and Status as a Motivation to Give

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Author Info

  • Jeroen van de Ven

Abstract

The aim of this paper is to explain gift giving as due to a demand for social approval and status. 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 offered. The implication for the interaction between gift giving and the market institution is that implementing price incentives in a nonmarket environment can be welfare-decreasing.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 158 (2002)
Issue (Month): 3 (September)
Pages: 464-

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200209)158:3_464:tdfsaa_2.0.tx_2-t

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  1. Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
  2. Kranich Laurence, 1994. "Gift Equilibria and Pareto Optimality Reconsidered," Journal of Economic Theory, Elsevier, vol. 64(1), pages 298-300, October.
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Cited by:
  1. Platteau, Jean-Philippe & Sekeris, Petros G., 2010. "On the feasibility of power and status ranking in traditional setups," Journal of Comparative Economics, Elsevier, vol. 38(3), pages 267-282, September.
  2. Gerlinde Fellner & Gabriele K. Lünser, 2008. "Cooperation in local and global groups," Department of Economics Working Papers wuwp122, Vienna University of Economics, Department of Economics.
  3. Principe, Kristine E. & Eisenhauer, Joseph G., 2009. "Gift-giving and deadweight loss," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 215-220, March.
  4. Dipankar Purkayastha, 2004. "A theory of reciprocal gifts," Atlantic Economic Journal, International Atlantic Economic Society, vol. 32(4), pages 312-319, December.

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