A chain of 900 strangers...

 When I talk about chains on this blog, I'm almost always talking about kidney exchange.  But there are other kinds of gift giving chains. The Washington Post has this cheerful story:

A chain of 900 strangers bought one another’s meals at a Dairy Queen drive-through  By Cathy Free

"It started with an older gentleman who pulled up to the Dairy Queen Grill & Chill drive-through window in Brainerd, Minn., at the height of the lunch hour on a Thursday.

“I’d also like to pay for the car behind me,” cashier Darla Anderson said the customer told her on Dec. 3. “Whatever they’ve ordered, I’ll cover it.”

...

"two days and hundreds of cars later, she and the rest of the crew were still ringing up “pay it forward” orders as each person who came to the drive-through offered to pay for the car behind them.

“I’ve seen ‘pay it forward’ chains that went on for about 20 cars, but never anything like this,” said general manager Tina Jensen, 43.

"In the end, it spanned more than 900 cars over 2½ days.

"On the first day, Jensen watched as hour after hour customers paid for the ice cream and hamburgers of the strangers behind them. So she decided to write a quick post on the Dairy Queen Facebook page.

...

"People who saw the post wanted to join in, and a long line of cars was soon snaking along the drive-through lane.

...

"The first two evenings of the pay-it-forward chain, before Dairy Queen closed for the night, Jensen gave the last person at the drive-through the option to leave a few dollars to pay it forward for the first customer the next day.

...

"The chain was finally broken early in the evening Dec. 5, she said, when a customer said he didn’t have enough money to pay for the order behind him, which cost more than his. The restaurant was out of carry-over funds left by other customers."

Gift-giving cycles: kidney exchange stories from Britain and Israel

The Guardian has a podcast about a British kidney exchange involving three patient-donor pairs. They call it a "chain" but they mean a cycle--it's a cycle of gift giving. You can listen at the link.

Would you give your kidney to a stranger?
The UK’s living donor scheme allows six people to enter a chain, and three of them will get a new kidney from a stranger. Rachel Williams speaks to six participants. 

"The UK’s living donor scheme allows six people to enter a chain, and three of them will get a new kidney from a stranger. Such chains are anonymous but, for the first time, the Guardian’s Rachel Williams has brought together six participants.

In today’s episode, we hear from those giving and receiving a kidney, and Williams explains how the matches are made possible. "

*************

And from YNet, a story of a non-directed donor who became a directed donor and part of a cycle with four patient-donor pairs:

The kidney club: Doctors at Beilinson Hospital performed an extraordinary 8-way kidney surgery involving 4 donors and 4 recipients brought together by Matnat Chaim, dedicated to encouraging altruistic kidney donations.

the 4 recipients

"The transplant chain was facilitated by Matnat Chaim, an Israeli non-profit dedicated to encouraging healthy volunteers to donate kidneys to patients requiring a transplant. The organization, which has already facilitated 626 transplants to date, was founded in 2007 by Rabbi Yeshayahu Heber after he found himself needing a kidney, finding a donor and then setting out to help others who were in the same predicament.

"This kidney donor chain began with altruistic donor Benjamin, who donated to a man named Lee. Yardena, Lee’s partner, in turn donated a kidney to a woman named Leah, whose son, Yonatan, donated a kidney to a man named Suheib. Suheib’s mother, Maison, then donated her kidney to a woman named Gil—who was meant to be the original recipient of the kidney donated by Benjamin.

""I approached Matnat Chaim Chairman Rabbi Heber and asked him to help me find a kidney donor," said Gil, 36, adding, "to my delight, Benjamin, a person I don’t even know, agreed to donate his kidney … unfortunately though he wasn’t a match.”

"After tests conducted by doctors at Beilinson ahead of the planned cross-transplant, a possibility arose for Gil to be at the receiving end of a new kidney.

"We have all become like family," Gil continued, “All of us are from a different background—religious, secular, right and left-wing, Jews and Arabs—there is now a special connection between us."
*********

See my previous posts on Matnat Chaim
******

Gift giving rings have for some reason reminded me today of the anthropological literature on gift giving in cycles through Kula rings in New Guinea, studied by the early anthropologist/ethnographer Bronisław Malinowski.

Merry Xmas to all of you for whom today (or yesterday) is a day of gift giving.

Gift registries for everything

Are people starting to think what gifts to buy you?

US Airways sends me the following email:

Don’t just wish for the miles you want…Ask for them!
Create your Dividend Miles Gift Registry today.

Dreaming of a trip but don't have enough miles? Create your Dividend Miles Gift Registry so your friends and family can help you. Whether it’s a special event like your honeymoon or birthday, or just the vacation you’ve wanted to take – ask and you shall receive.

Here’s how:

• Create your Gift Registry
• Invite friends and family to gift or share miles
• Track your progress
• Book your award trip!

• Miles Gift Registry

'tis the season to exchange gift cards

Cardpool is making a market in gift cards, offering to buy yours, and sell you those cashed in by others.
"You are always buying directly from us and selling directly to us. Cardpool buys our gift cards directly from our customers, verifies the authenticity and balance of each gift card, and holds on to them until a buyer is found. Even though we may never find a buyer for a given gift card, we pay sellers within 24 hours of receiving their gift card."

Here's how they address the trust problem involved with putting a gift card in the mail to them:

"How do I know I'll receive payment after sending you my gift cards?"
"Great question! Although there is a bit of a leap of faith here, we've received glowing reviews from CNN, NBC, ABC, CBS, FOX, NPR, The New York Times, The Wall Street Journal, and many other highly reputable publications. In addition, we're backed by the same founders, CEOs, and investors responsible for many of the brands we've come to love including Google, Facebook, PayPal, Zappos, StubHub, Twitter, Skype, Slide, Lotus, Mint, and many others. We were only able to do this by putting our customers first.
If you'd like to learn more, read about us in the news and learn more about our investors."

Unlike the original-issue market for gift cards, exchanged gift cards come in discrete amounts (sometimes they are the unused credit from the originally issued amount, or sometimes they are merchandise credit for goods that were returned). For example, when I looked there were four cards from the retailer Ann Taylor, in face value amounts $197.53, $212.17, $235.44, and $257.09, all being offered at a 15% discount...



HT: Joshua Gans

Give cash next year?

Tim Harford, writing about Joel Waldfogel's famous work on the "deadweight loss" of Christmas gifts, writes "What to do? Waldfogel admits that with some exceptions, such as gifts from older relatives to teenagers, cash is not a suitable gift. Nothing says “I don’t understand you” like a cash gift. Nor is it easy to turn one’s back on the whole ritual."

But the repugnance of cash gifts has given rise to some close substitutes, some of which work better than others. (I admire wedding gift registries as an elegant market design solution to the problem.) Gift cards, not so much.

The NY Times has an illuminating article about the business of gift cards: Redeem All of Gift Card, or Give Store a Present.

"This year, nearly $5 billion of the money that well-meaning givers have put onto gift cards will go unspent, according to TowerGroup, a financial services consulting firm. The money then reverts back mostly to the retailers and banks that loaded the plastic initially.
In the industry, this is known as breakage, and here’s what it means: If you buy a gift card for a family member or friend, there’s a good chance you’ll give a little gift to the retailer or bank that issued it as well.
How does breakage happen? People lose their cards. Or they abandon them in a drawer and assume they’re expired when they’re unearthed years later. Fees can still eat away at some of them. And people may use $46 of a $50 card and then throw it out rather than make another trip back to the store."
...
"It isn’t just a break-even proposition either, according to the people behind Acceptvisamastercards.com. If you count 10 to 12 percent breakage in your calculations, the site contends, the gift card display can become the “most profitable square foot of space in the place.”
This is how some of the people in the industry talk about gift cards when they think consumers aren’t listening. And for big companies, breakage can add up to real money. Not every big retailer or bank discloses it, but Best Buy was kind enough to note that it kept $38 million in breakage in its most recent fiscal year. Home Depot cleared $37 million. Breakage can be total when a retailer goes out of business. "

One good market design idea is the "gift receipt," a receipt that identifies the store at which a gift was bought, but doesn't list the price that was paid. This is meant to make returns easier (e.g. in case you got two electric can openers, or if last year's waist size no longer fits). These are catching on, according to the National Retail Federation, which reports: Stigma of Gift Receipts is Diminishing Among Americans, According to NRF Survey. (Stores' policies on returns are actually an interesting market design issue in themselves, different in the U.S. than in Europe...)

Then there's Dilbert.