Another result of this analysis is that people may
sometimes prefer to receive a gift in kind over a gift in
cash, again violating a simple principle of microeconomic
theory. This can happen if the gift is on a “forbidden
list.” One implication is that employers might
want to use gifts as part of their incentive packages.
Some organizations (e.g., Tupperware) rely on this
type of compensation very heavily. Dealers are paid
both in cash and with a multitude of gift-type items:
trips, furniture, appliances, kitchen utensils, etc. Since
most Tupperware dealers are women who are secondincome
earners, the gifts may be a way for a dealer to: