Traditional economic models cannot explain why:
A)some people buy expensive cars and others buy cheap cars.
B)people leave tips at restaurants where they regularly dine.
C)people donate money to charity completely anonymously.
D)people buy more of certain goods when their income falls.

Question

Quizplus · Accepted Answer

Traditional economic models exclude other-regarding motives. Since people are likely receive little personal gain from making an anonymous donation, traditional economic models cannot readily explain this behavior.

Traditional Economic Models Cannot Explain Why