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We examine whether the recipient type of a chosen option (i.e.,purchase for self vs.gift from other) moderates the effect of experiential versus material choices on happiness.Although the literature has shown that consumers associate greater happiness with experiential (vs.material) choices for themselves,we hypothesize and find greater happiness associated with material (vs.experiential) options chosen by others.Next,we look at the role of gift-recipient identity and relationship closeness with receiving gifts.We find that when high closeness exists between gift giver and receiver,identity congruent material gifts and identity incongruent experiential gifts are preferred.