Why You May Skimp on Your Valentine's Day Gift
University of Chicago Booth School of BusinessJust as people are more likely to give more to close friends than to strangers, people may be more likely to give less to close friends than to strangers if there is a mutual overall benefit for doing so. Call it altruistic selfishness. The gift-giver may see himself and a close friend as a unit—and choose the best total gift for the unit rather than for either individual. The total gift could end up including the gift purchased, a free gift, and any money saved.