A theory of reciprocal gifts

Anthropologists and sociologists have long emphasized the concept of generalized reciprocity and symbolic value of gifts. When gifts are given in primitive or modern societies, symbolic meanings of gifts are taken into account and the gift recipients feel obliged to return the favor. In the field of economics, several papers in recent years have emphasized the value of gifts as signaling toools or as expressions of altruism. However, these papers do not address the issue of symbolic value of gifts. This paper discusses how symbolic value of a gift can be determined and how it is related to the concept of generalized reciprocity. A Nash game is used to show how symbolic values may be determined in a model of generalized reciprocal gifts.