Did you unwrap any crappy presents this morning? Are you thinking that all the shopping and running around was a big waste of time?
You might be right, says economist Joel Waldfogel.
Waldfogel estimates that people generally spend 16% more on presents than they’re worth to those who receive them. He calls this phenomenon “the deadweight loss of Christmas.”
For example, a deadweight loss is created when you spend $20 to give me a DVD that I would spend only $15 to buy for myself. Economist Tim Harford explains:
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