Final answer:
The purpose of gift exchange is to establish and affirm relationships among people. There are three kinds of reciprocity related to it: generalized reciprocity, balanced reciprocity, and market exchange.
Step-by-step explanation:
The purpose of gift exchange, as described by Sahlins, is to establish and affirm relationships among people. There are three kinds of reciprocity related to gift exchange. The first kind is generalized reciprocity, where people share things with no regard for their value or interest in compensation. This is practiced in gatherer-hunter societies, where goods are divided equally among band members. The second kind is balanced reciprocity, which involves ongoing relationships of exchange. For example, among the Dobe Ju/'hoansi people, individuals develop relationships based on a gift-giving practice called hxaro, where one person asks another for a particular item and a return gift of equal or slightly greater value is made at an unspecified time. The third kind is market exchange, which is the most common form of transaction among strangers in capitalist societies.