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>In his book Waldfogel argues that purchasing gifts for other people is a "terrible way to allocate resources" as a result of gift givers' lack of knowledge of the recipients' true preferences. Waldfogel estimates that approximately $12 billion a year in the U.S. and $25 billion a year worldwide is misallocated in Yuletide giftgiving, which he calls "an orgy of wealth destruction".
He also accounts for happiness, goodwill, and social bonding in the gift giving process, making the case that all three could be better served without gift giving.
