The purpose of this study was to examine inefficiency in gift giving, and in particular, the "deadweight loss" that results from giving apparel gifts to college students. Deadweight losses from gift giving were calculated using gift recipients' estimates of gift cost and gift valuations, for both December holiday and Valentine's Day gifts. Probit models were used to estimate the likelihood of receiving apparel gifts and the likelihood of receiving cash gifts. OLS regression was used to investigate the impact of gift cost, gift type, gift occasion and giver's relationship to recipient on gift value. Findings suggest that deadweight loss is a function of giver's relationship to recipient and gift type. Gifts received from parents, siblings, significant others and friends were shown to be more efficient than gifts received from aunts, uncles, cousins and grandparents. The deadweight loss resulting from apparel gifts was shown to be significantly greater than the deadweight loss resulting from cash gifts and all other types of gifts, except perfume.