Gifts and trade: A general equilibrium approach to social interactions

Jean-Marc Bonnisseau () and Marc Fleurbaey ()
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Jean-Marc Bonnisseau: Centre d'Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne, https://cv.hal.science/jean-marc-bonnisseau
Marc Fleurbaey: Centre National de la Recherche Scientifique, Paris School of Economics

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: We propose a general model of social interactions in which individuals can transfer objects through two procedures: market exchange and gifts. Gifts affect the social status of donors and recipients, whereas market trade is neutral in this respect. We study the existence and efficiency of equilibria. Our model suggests that under natural assumptions there is insufficient gift-giving and excessive reliance on market trade, and this can be shown by substituting gifts to trade, which enhances the social part of individual utilities without affecting prices and final consumption.

Keywords: Markets; gift; social status; equilibrium; efficiency; insufficient gift-giving (search for similar items in EconPapers)
JEL-codes: D11 D16 D61 (search for similar items in EconPapers)
Pages: ?? pages
Date: 2026-04
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