ABSTRACT
Exchange is a form of interchange between individuals or groups. It is the act of giving and taking one thing for another: goods, services, or some intangible item must change hands. Exchange is the engine that drives the circulation of commodities, items that flow through the economic system until they are consumed. And exchange involves reciprocity. Although goods circulate as the result of predatory activities such as brigandage, plundering, robbery, and piracy, these cannot be considered as exchange. Throughout history humans have engaged in a variety of consensual exchanges, two of the most important forms being gift-giving and trade. Whatever is being exchanged must have some utility, functional or social, in order to have a value assigned to it. That said, exchange can involve useful products such as metals and grains or products having only ceremonial, symbolic, or prestige value. One of the oldest and most universal forms of consensual exchange is gift-
giving, which originated as an aspect of intra-family and clan relations. In this, exchange was motivated more by social than economic factors: the goal was to maximize social contacts rather than reap material benefits. The giver of a gift gained esteem according to the perceived value of the gift. Thus it was not the possession of wealth that conferred prestige and power but the giving of wealth; it was truly better to give than receive. In tribal societies a common venue for ceremonial gift-giving was the feast where guests ate their fill and went home with presents as well. However, gift-giving was not simply a matter of gaining prestige through generosity, and usually the item was not a present in the sense that the giver expected nothing in return. Gift-giving established an obligation that led to counter gift-giving or the fulfillment of some duty, which in turn required a new round of transactions that theoretically was never-ending. Gift exchange often was used to forge links between groups or states. Among states in the ancient world, rulers often exchanged gifts and referred to each other as “brother,” symbolizing their friendly relations. For centuries this served as the most important mechanism for transferring goods among certain states.
