I noticed the other day that someone had linked to my post from January about the value of gifts and it spurred me to do something I've been meaning to do for some time.
It's a bit of a tradition in academia for someone, generally with sponsorship, to come up with a formula for something. Last year I think someone came up with a formula that calculated the most depressing day of the year. I can't remember who sponsored it, but it resurfaced recently to calculate the happiest day of the year.
Anyway, it always gets reported in the press because they're suckers for things like that.
So here's my entry: a calculation for the value of a gift.
You may remember in my original post I stated something like 'the value of a gift is inversely proportional to its use value'. This, then, becomes the economy of gifts. A simple but utterly useless token becomes more invested with meaning than, say, a washing machine. (A few weeks ago I sold a freezer to a guy who told me he was buying it for his wife as it was their wedding anniversary. More expensive, but less meaningful than a bunch of flowers. Indeed, quite possibly a 'negative' gift? More on this in a moment).
While walking back from my grocery shopping the other day I was trying to shape out how an equation would look for gifts.

(Any of these three is okay. For '1' any constant will do, and sometimes the formula is written as y = c/x where c is a constant. This point becomes important later on!)
I also thought that financial value had to be a factor in there somewhere so believed the formula would be something along the lines of gift value = 1/(financial value x use value)
Well that's okay, but how do you work out what the use value is? And what about other factors? Maybe, I thought to myself, this is more complicated than it looks!
(You can skip the next stuff if you're not mathematically inclined. The actual formula is at the end of the post)
Here's my original hypothesis: "The value of a gift is inversely proportional to the use to which it is put".
On further consideration it also seems likely that factors to be included in this equation are:
- How close the giver is to the receiver (with husband/wife being 10 and casual acquaintance being 1)
- The number of people who are as close or closer to the giver (the idea being that the more people who are as close or closer then the less the gift means)
- The cost of the item as a proportion of the income of the giver (ignoring any nonsense about not approving of excessive exenditure - let's face it, the more someone spends the better it goes down; but it has to be proportional as someone who's rich can't get away with spending the same amount as someone who's poor)
So those factors would allow us to work out the gift value.
But it also seems reasonable that there is a difference between the value as seen from the perspective of the giver, and from the receiver. So a second gift value for the receiver, gv(G) could be calculated using:
- How close the receiver is to the giver
- How many other people are as close or closer to the receiver
- The cost of the gift as a proportion of the receiver's income
Practicality, incidentally, is rated from 0 to 10. Because you cannot divide by zero, all practicality values must have 1 added to them so that the scale becomes effectively 1 to 11.
These two figures, gv(G) and gv(R) could then be used to work out a gift rating whereby the gift value for the giver is subtracted from the gift value for the receiver. If a postive score is achieved, the gift can be deemed a success.
So: gv(G) = gift value (for the giver) = ((relationship value/number of people with same relationship value or higher for giver ) x (cost of item/monthly income of giver))/practicality + 1
and: gv(R) = gift value (receiver) = ((relationship value/number of people with same relationship value or higher for receiver) x (cost of item/monthly income of receiver))/practicality + 1
Or to put it another way:
gv(G) = ((rv(G) x fv)/(nrv(G) x mi(G)))/pv + 1
gv(R) = ((rv(R) x fv)/(nrv(R) x mi(R)))/pv + 1
Givers should aim for a positive value on the 'Gifter Scale' where
GV = gv(R) - gv(G)
or:

To summarise what those symbols mean:
- GV = Final gift value
- rv(G) and rv(R) = the closeness of the giver to the receiver and vice versa. The higher the number the closeer they are - it doesn't matte what scale you use so long as both sides of the equation use the same one. But 0 = stranger and 10 = husband/wife/life partner seems reasonable
- nrv(G) and nrv(R) = the number of people with the same or a closer relationship to the giver/receiver
- fv = the financial value of the gift (there is of course an argument to be made about the role of 'bargains' or 'investments' here - if I spend one pound on a gift that is really worth ten times that should it go in my favour or against?!)
- mi(G) and mi(R) = monthly incomes of the giver/receiver
- pv = practicality or use value on a scale of, say, 0 to 10 with 0 being completely useless (souvenirs are included here) and 10 being essential for continued existence (e.g. a kidney)
This isn't quite the same as my original hypothesis as, although practicality value is still the important factor, the figure above the line is not a constant (which is what defines inverse proportion.
But maths aside, the lesson to be learnt from this is that the giver should always aim to spend a greater proportion of the receiver's income than their own or to buy a 'useless' gift (i.e. a 'token'). The latter piece of advice is particularly relevant in cases where the giver earns less than the receiver.
Anyway, there's my theory - anyone care to plug in some figures and see how it pans out? I'm sure the equation can be simplified a lot more (help appreciated!)
[Update - I think this is a workable simplification! My head's spinning...]

which further simplifies (I think!) to:

Which is remarkably similar to my original idea that gift value = 1/(financial value x use value)...
Okay, so a little bit of nonsense, right? Well, no... the point of the exercise was not to come up with a fancy-looking formula but to explore what it is that makes up a gift and its perceived value. For me, after a little thought, the value is amplified by the closeness of the giver to the receiver but diminished if that closeness is not exclusive. The financial value is irrelevant but the financial investment, as a proportion of the giver's income
is. The 'inversely proportional to the use value, or practicality value' thing is still entirely arbitrary and I haven't even come close to proving that one way or the other.