A significant fraction of gifts are unwanted, or the giver pays more for the item than the recipient values it, resulting in a misallocation of economic resources known as a deadweight loss. Unwanted gifts are often regifted, donated to charity, or thrown away. A gift that actually imposes a burden on the recipient, either due to maintenance or storage or disposal costs, is known as a white elephant.
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In an effort to reduce costs, many mass-producers of toys locate their factories in areas where wages are lower. China manufactures about 70 percent of the world’s toys and is home to more than 8,000 toy firms, most of which are located in the Pearl River Delta of Guangdong Province. 75% of all toys sold in the U.S., for example, are manufactured in China. Issues and events such as power outages, supply of raw materials, supply of labor, and raising wages that impact areas where factories are located often have an enormous impact on the toy industry in importing countries.
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One means of reducing the mismatch between the buyer and receivers' tastes is advance coordination, often undertaken in the form of a wedding registry or Christmas list. Wedding registries in particular are often kept at a single store, which can designate the exact items to be purchased (resulting in matching housewares), and to coordinate purchases so the same gift is not purchased by different guests. One study found that wedding guests who departed from the registry typically did so because they wished to signal a closer relationship to the couple by personalizing a gift, and also found that as a result of not abiding by the recipients' preferences, their gifts were appreciated less often.
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