What are economic exchanges? The received view has it that exchanges are mutual transfers of goods motivated by inverse valuations thereof. As a corollary, the standard approach treats exchanges of services as a subspecies of exchanges of goods. We raise two objections against this standard approach. First, it is incomplete, as it fails to take into account, among other things, the offers and acceptances that lie at the core of even the simplest cases of exchanges. Second, it ultimately fails to (...) generalize to exchanges of services, in which neither inverse preferences nor mutual transfers hold true. We propose an alternative definition of exchanges, which treats exchanges of goods as a special case of exchanges of services and which builds in offers and acceptances. According to this theory: (i) The valuations motivating exchanges are propositional and convergent rather than objectual and inverse; (ii) All exchanges of goods involve exchanges of services/actions, but not the reverse; (iii) Offers and acceptances, together with the contractual obligations and claims they bring about, lie at the heart of all cases of exchange. (shrink)

Giving money to others feels good. It is now standard to use the label ‘warm glow feelings’ to refer to the pleasure people take from giving. But what exactly are warm glow feelings? And why do people experience them? To answer these questions, we ran two studies: a recall task in which participants were asked to remember a donation they made, and a donation task in which participants were given the opportunity to make a donation before reporting their affective states. (...) Correlational and experimental results converge towards the conclusion that, if the nature of the warm glow is straightforward, its source is multifaceted. Regarding the nature of the ‘warm glow’, the pleasure people took in giving was mainly predicted by one particular type of positive emotion and was indeed described by participants as ‘warm’. Regarding the underlying psychological mechanisms, warm glow feelings were elicited by positive appraisals regarding the donor’s moral character, positive appraisals regarding the actual impact of the donor’s donation on the welfare of others and a feeling of communion with others. We discuss the theoretical implications of our findings. (shrink)