Janae donates $50 to the local Humane Society. This means she can't buy that new pair of shoes, which according to her utility schedule, would have maximized her utility. This example illustrates the ________ aspect of behavioral economics.
A) bounded self-interest
B) bounded rationality
C) bounded will-power
D) empowerment effect

Question

Quizplus · Accepted Answer

Janae's decision to donate instead of maximizing her utility by buying shoes reflects bounded self-interest, where individuals consider the welfare of others over their own utility maximization.

Janae Donates $50 to the Local Humane Society