LOS ANGELES, Dec. 7, 2007-- Is a $100 Victoria's Secret gift card really worth as much as a $100 Target gift card? Analyzing auctions of gift cards on eBay, Jennifer Pate, an economics professor at Loyola Marymount University, found gift cards from certain stores fetch consistently lower sale prices than others.

Pate's research suggests gift cards are less valuable to recipients when given for stores that offer less product variety and fewer locations. "The message for holiday shoppers is clear: unless you know your recipient's favorite store, give them a gift card for a retailer that provides a wide variety of options, such as Target or Home Depot," said Pate.

The study, which was published in the Journal of Economic Perspectives, also reveals the average gift card is resold with a 15% discount. "In other words, people who receive gift cards are willing to accept around $85 in cash in exchange for a $100 gift card. For many gift givers, this means that a $100 cash gift will go much farther than a $100 gift card," said Pate.

Ranked according to their resale value, the ten "best" gift cards are Home Depot, Lowe's, Office Max, Circuit City, Starbucks, Old Navy, Wal-Mart, Target, Staples and Best Buy, all selling for above 86% of their original value (a 14% maximum discount). The five "worst" gift cards are Tiffany & Co, Victoria's Secret, Abercrombie & Fitch, American Eagle, with Express coming in last at 74% (a 26% discount).

The bottom line? "If you are debating between a cash gift and a gift card, consider a cash gift with a note to the recipient suggesting the money could be spent at [insert store name here]-to add the thought that counts," said Pate.

About Loyola Marymount University

Located between the Pacific Ocean and downtown Los Angeles, Loyola Marymount University is a comprehensive university offering a variety of undergraduate and graduate degrees. Founded in 1911, LMU is the largest Catholic institution of higher education in Southern California with nearly 5,500 undergraduate students and more than 3,000 graduate and law students. Students can choose from more than 80 majors and programs in four colleges, two schools and Loyola Law School. The university emphasizes the Jesuit and Marymount traditions: education of the whole person -- mind, body and spirit -- as well as ethics and social justice. For more LMU news and events, please visit www.lmu.edu/news.