Comments on: The Dead Weight Loss of Christmas http://dumbagent.com/the-dead-weight-loss-of-christmas/?utm_source=rss&utm_medium=rss&utm_campaign=the-dead-weight-loss-of-christmas Your daily dose of Economics Thu, 17 May 2012 13:17:35 +0000 hourly 1 By: How to shop for Christmas presents : DumbAgent.com http://dumbagent.com/the-dead-weight-loss-of-christmas/comment-page-1/#comment-5245 How to shop for Christmas presents : DumbAgent.com Thu, 12 Nov 2009 10:03:18 +0000 http://dumbagent.com/2007/12/29/the-dead-weight-loss-of-christmas/#comment-5245 [...] This is a re-post of an article we originally posted on Dec 29th, 2007, and which can be found here. Utility: (1 votes, average: 9 out of 10)  Loading ... addthis_pub = [...] [...] This is a re-post of an article we originally posted on Dec 29th, 2007, and which can be found here. Utility: (1 votes, average: 9 out of 10)  Loading … addthis_pub = [...]

]]> By: Senectus http://dumbagent.com/the-dead-weight-loss-of-christmas/comment-page-1/#comment-16 Senectus Thu, 03 Jan 2008 22:43:56 +0000 http://dumbagent.com/2007/12/29/the-dead-weight-loss-of-christmas/#comment-16 Or, in other words, Posh = Old Spice Or, in other words,

Posh = Old Spice

]]> By: Ocean http://dumbagent.com/the-dead-weight-loss-of-christmas/comment-page-1/#comment-15 Ocean Thu, 03 Jan 2008 20:43:51 +0000 http://dumbagent.com/2007/12/29/the-dead-weight-loss-of-christmas/#comment-15 Ok. I think both of you are bringing up the same point: I did not count the economically irrational satisfaction we human beings incur when receiving presents we think are special. This though, will also have to be measured. David Beckham could give Posh a tootbrush for Christmas, and just because he engraves her name on it (The Thought), doesn't mean that's enough for her to be happy with it. If we agree to call the Thought factor T (easier than I3TC) and insert it in the equation mentioned above it would look like this: {[(25%v)*T]-(100%v)} = -75%v So let's say we want it to at least equal out (ie. the amount you are perceived to spend, plus the Thought factor, should at least equal the cost) [(25%v)*T] = (100%v) Which, broken down, becomes: (25%v)*T = 100%v [25%v(T)] / 25%v = 100%v / 25%v T = 4 In other words, T would have to be worth 4 times the perceived discount in order to equal the cost of the present. Of course, T cannot be measured and will differ with each person, so it will always be an assumption. And what good is a Christmas Economic theory without assumptions to make it useless? Ok. I think both of you are bringing up the same point: I did not count the economically irrational satisfaction we human beings incur when receiving presents we think are special. This though, will also have to be measured. David Beckham could give Posh a tootbrush for Christmas, and just because he engraves her name on it (The Thought), doesn’t mean that’s enough for her to be happy with it.

If we agree to call the Thought factor T (easier than I3TC) and insert it in the equation mentioned above it would look like this:

{[(25%v)*T]-(100%v)} = -75%v

So let’s say we want it to at least equal out (ie. the amount you are perceived to spend, plus the Thought factor, should at least equal the cost)

[(25%v)*T] = (100%v)

Which, broken down, becomes:

(25%v)*T = 100%v

[25%v(T)] / 25%v = 100%v / 25%v

T = 4

In other words, T would have to be worth 4 times the perceived discount in order to equal the cost of the present. Of course, T cannot be measured and will differ with each person, so it will always be an assumption. And what good is a Christmas Economic theory without assumptions to make it useless?

]]> By: Jason http://dumbagent.com/the-dead-weight-loss-of-christmas/comment-page-1/#comment-14 Jason Wed, 02 Jan 2008 16:17:17 +0000 http://dumbagent.com/2007/12/29/the-dead-weight-loss-of-christmas/#comment-14 I'm going to go out on a limb here but in this particular case of dead weight loss, is it not possible that the inhereited 'loss' in monetary value of gift giving is actually the value of intangible satisfaction that the person giving the gift gains in the whole gift giving process? In other words, the loss in value is replaced by giddy, quasi-altruistic, heart warming satisfaction that is the holiday spirit? I’m going to go out on a limb here but in this particular case of dead weight loss, is it not possible that the inhereited ‘loss’ in monetary value of gift giving is actually the value of intangible satisfaction that the person giving the gift gains in the whole gift giving process? In other words, the loss in value is replaced by giddy, quasi-altruistic, heart warming satisfaction that is the holiday spirit?

]]> By: Senectus http://dumbagent.com/the-dead-weight-loss-of-christmas/comment-page-1/#comment-12 Senectus Mon, 31 Dec 2007 07:21:27 +0000 http://dumbagent.com/2007/12/29/the-dead-weight-loss-of-christmas/#comment-12 What about "It's the thought that counts"? If, for example, you give a hunting rifle to your friend, the local chair of PETA, the I3TC discount will approach 100%. On the other hand, a bottle of Old Spice which plays We Shall not be Moved will gain a 50-60% premium, if gifted to a Manchester United fan. A gift which appears under the tree less than 24 hours before Christmas morning carries an automatic I3TC discount, while anything personalized for the giftee' gets premiums ranging from 10% for a single initial on a handkerchief to 90% for the full name embossed on a bowling ball bag (assuming, of course, that the giftee is a bowler or has expressed aspirations along that line.) What about “It’s the thought that counts”?
If, for example, you give a hunting rifle to your friend, the local chair of PETA, the I3TC discount will approach 100%. On the other hand, a bottle of Old Spice which plays We Shall not be Moved will gain a 50-60% premium, if gifted to a Manchester United fan.
A gift which appears under the tree less than 24 hours before Christmas morning carries an automatic I3TC discount, while anything personalized for the giftee’ gets premiums ranging from 10% for a single initial on a handkerchief to 90% for the full name embossed on a bowling ball bag (assuming, of course, that the giftee is a bowler or has expressed aspirations along that line.)

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