In the past, gift-giving has interested mainly anthropologists because it was taken to be a primitive mode of exchange. Recent contributions of economists acknowledge however that gift-giving is still present in modern exchange economies. In this paper gifts are characterized by motivations. Two main features of gift giving are to be explained: (in-)adequacy and (non-)reciprocity. It is argued that social approval is potentially a powerful explanation of gift-giving. We relate the results to the market economy and try to explain the anomaly that gift-giving is sometimes reduced after compensation is offered.
van de Ven, Jeroen, The Economics Of The Gift.