Gift-giving can be explained through:
A)screening
B)moral hazard
C)asymmetric information and signalling
D)none of the alove

Question

Quizplus · Accepted Answer

Gift-giving involves asymmetric information and signalling, as the giver is trying to signal their relationship with the recipient and their level of care or appreciation for them. In this way, gift-giving serves as a form of communication beyond the tangible value of the gift itself. The other options, screening and moral hazard, do not accurately capture the motivations and dynamics behind gift-giving.

Gift-Giving Can Be Explained Through