The most bizarre thing that one may encounter is a person who is astoundingly rich willingly hand out their money to charities and the needy. One would gaze in amazement at a person with the ability to buy the whole world over twice blindly throw their money at people who are desperately in need, with a mile wide grin covering their face. No law of economics justifies this behavior. Each and every person is expected to act in his or her own self-interest without giving the outside world a second thought or glance. Countless economists have been awestruck as they watch people behave irrationally and unpredictably with their money, throwing all laws of economics completely out of proportion. With the exception of insanity, no economist can even begin to explain why people behave this way with their money and belongings, and do not, in any way, follow any guidelines of economics.
The psychological impact on economic behavior is a great factor in determining why people behave in certain ways, economically. It was then recognized that in order to analyze this behavior, it was essential to tie psychology in with economics. Only then can one hope to comprehend the irrational way people behave with their money. And so, the concept of Economic Psychology was created. Two social sciences were tied together to clarify this illogical behavior. A persons subconscious and way of thinking is the key to the way they will act in all they do, and life in general. Economic psychology clearly explains the irrational way people behave with their money and resources.
Self-interest is a concept that was developed by Scottish economist Adam Smith. This principle states that all people are in some way selfish about fulfilling their demands. "Man's interest is defined as that which benefits his...
Good essay (but insufficiently referenced)
There is an economic theory that explains this behaviour partially, called "game theory". People act in accordance of a group, in the fear of punishment (see www.gametheory.net).
Equally some bigger companies donate money, in public of course, for the simple reason of advertisement. That is actually a type of marketing that I approve of :)
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