Swiss consumers planned to spend an average of 341 francs on Christmas gifts, according to a survey carried out in early December by the Swiss Retail Federation, the retail association. However, some specialists believe that these gifts become an “economic dead weight”.
For the American Joël Waldfogel, an object, once offered, loses between a tenth and a third of its value, because the perception of this varies greatly between the person who buys it and the person who receives it.
For example, a gift paid for 100 francs could see its value be estimated at only 30 francs, leading to a “dead loss” of 70 francs, according to the term used by economists.
Loss of 250 million francs?
Thus, if seven and a half million adults in Switzerland spent 341 francs to buy Christmas gifts and the deadweight loss is only limited to 10%, there is already a gap of 250 million francs.
This loss of value can, however, reach 30%, especially in certain cases studied by Joël Waldfogel: when grandparents give gifts to their grandchildren, just ahead of those given by uncles and aunts to nephews and nieces.
According to the researcher, the only solution to preserve the value of gifts would be to offer cash.
Radio subject: Katja Schaer
TV report: Guillaume Carel
Adaptation web: mera
