His new book argues that holiday gift-giving is not only stressful but in fact economically unsound. That's because the money spent on presents (especially when they're bought in a caffeine-fueled frenzy on December 24th--wait, is that just me?) doesn't follow the same rational patterns that other spending does.As Waldfogel explains it on Planet Money, we only buy ourselves things that are worth their price to us (a $50 sweater that will give $50 worth of pleasure, for instance.) But all sorts of other variables come into play when the item is bought for a third party. If that present is a dud, and ends up in the closet, it represents a complete (100%) waste of resources. And the chances that the present will be unwanted, or be worth far less than its monetary value to the recipient, are unacceptably high for a guy whose life's work is cost-benefit analysis.
Another argument for re-gifting?
