A behavioural economist will explain Tom's donation to charity by saying that Tom is displaying
A)the endowment effect.
B)bounded rationality.
C)bounded self-interest.
D)bounded willpower.
E)the neuro effect.

Question

Quizplus · Accepted Answer

Tom's donation to charity can be explained by bounded self-interest, which suggests that individuals are not solely motivated by self-interest but also consider the welfare of others in their decisions. This concept aligns with the idea of making charitable donations.

A Behavioural Economist Will Explain Tom's Donation to Charity by Saying