A gift, often known as a present, is anything given to someone with no expectation of receiving something in return. It is not considered a gift if the person receiving the gift already owns the item. When providing a gift, there may be an expectation of reciprocity, but it is intended to be unrequited. Trading money, products, and other commodities with one another can help preserve social relationships and contribute to social cohesion in many countries. Economists have created the notion of a gift economy from the economics of gift-giving. A present, by extension, can be anything or an act of service that makes the other person happy or less pleased, particularly as a favor, such as forgiveness and compassion. Birthdays and holidays are the two most popular occasions for receiving gifts.

In different civilizations, gifts are traditionally wrapped in a variety of ways. In Western societies, gifts are often wrapped in wrapping paper and accompanied by a gift letter that includes the occasion, the recipient’s name, and the giver’s name. In Chinese tradition, the color red is linked with good prosperity. Although inexpensive gifts are popular among coworkers, associates, and acquaintances, personal friends, romantic interests, or family prefer more expensive or romantic gifts.

A substantial percentage of gifts are unwanted, or the donor spends more on the item than the recipient appreciates it, resulting in a deadweight loss or misallocation of financial resources. Unwanted gifts are commonly “regifted,” donated to charity or thrown away. A white elephant gift is one that costs the recipient money in terms of maintenance, storage, or disposal.

One explanation for the mismatch between the giver’s and receiver’s views is that the giver is more interested in the act of giving the present, whereas the receiver is more concerned with the item’s long-term utility. For example, many receivers would prefer a future experience to an item or a practical present to a more expensive, showier gift chosen by the donor.

One approach to lessen the mismatch between the buyer and the receiver’s likes is to plan ahead of time, which is often done in the form of a wedding registry or a Christmas list. Wedding registries, for example, are typically kept with a single merchant so that the exact items to be purchased may be specified (resulting in matching housewares), and purchases can be coordinated so that the same present is not purchased by several guests. According to one study, wedding guests that went off the registry did so to demonstrate a closer bond with the couple by personalizing a gift, and their presents were less appreciated as a result of not following the recipients’ preferences.

In 2017, the US spent an estimated $3.4 billion on Christmas gifts that were returned. The day after Christmas is generally the busiest day for returns in countries with substantial Christmas gift-giving traditions. The total unredeemed value of gift cards purchased in the United States each year is estimated to be about a billion dollars.

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