In this note we shall discuss a concept that - despite its prominence in both Hume (1739) and Smith (1759), its obvious relevance for social behavior, and its not so infrequent use in colloquial language - has never gained a foothold in economic theory: the concept of empathy. Specifically, we...

Gift givers are faced with the difficult task of choosing gifts that will be liked by gift recipients, and the challenging nature of this task often leads gift givers to unintentionally give poor gifts. The results of seven lab and field studies across 1,513 participants suggest that this...