ABSTRACT
I begin with the observation that the prototypical Western gift involves the intentional conversion of a generalized medium of exchange - cash - into an illiquid object, based upon imperfect information about the preferences of the intended recipient. The conversion of money into a difficult-to-sell object would be nonsensical as an opening move in a market exchange, given the high probability that the item selected will have less economic value to the recipient than would the original cash (Waldfogel 1993; E. Posner 1997: 572). Moreover, the expected reciprocation would likewise take the form of an illiquid good chosen under conditions of relative ignorance. Such a cumbersome and wasteful exchange transaction would seem to be unthinkable in an economically advanced society with well-developed markets and a generalized medium of exchange. Nevertheless, gift giving persists as an institution, complete with unwritten rules and conventions that are followed with remarkable consistency (Caplow 1984). What we need is a new vocabulary for understanding gift giving as it is practiced in modern Western societies. Instead of attempting to conflate gift giving and market exchange, such a vocabulary would focus on the characteristics of gifts that set them apart from ordinary commodities.
