What are some of the social functions of gift exchange today?

What are some of the social functions of gift exchange today? I don't get this question at all help please!

What are some of the social functions of gift exchange today?
I think gift exchange reduces economic efficiency because you can't be sure that utility from gift will be big enough to cover gift's costs.
Reply:i'll try to answer from what ive learned at uni.





1. in economics, it's all about maximising our utility (satisfaction), rite? given a budget, people would refrain themselves from buyin luxury good because there are other goods that are more necessary in everyday life. giving gifts would allow the other party to be able to enjoy luxury goods without guilt.





2. in this world of assymetric information we need ways to signal. giving gifts portray to the other party that we care about them.





3. giving gifts makes u feel good about yourself. again, this is the question of maximising your utility. it's almost similar to giving food stamp vs giving money case study (you can find out more about this, it's popular case study).





4. economists would say that the best gift is money. asymmetric information would lead us to give something that are not the "best" thing that satisfy the other party. if u give cash, than they can do whatever they want with it i.e to maximise utility given a budget. but then, remember point (1).





that's all i can think of. the points might be overlapping here and there but hopefully u can construct a good answer using all these points ;p

A question for men