Consumer Choice & Behavioral Market Structures

Paid Donations

A dueling charity outside the store has led Amy to offer a $5 gift card when people donate a toy to the toy drive inside the store. The two charities are substitutes for one another and offer similar goals. Some people donate to charity to feel good about their actions, but others are willing to donate if they are incentivized to do so. The Samaritan decides to buy a jar of army men to get a gift card for each one.

Consumer Choice & Behavioral

Donation Competition

Amy and Jonah are trying to help Mateo with a toy drive inside the store, but there’s a charity event happening outside the store. Amy asks the man to leave since he’s serving as a substitute for Mateo’s charity. A crowd gathers and accuses Cloud 9 of selling products for more than the cost and keeping the profit, i.e. being a profit-maximizing firm. Amy points out that all stores sell things for more than they cost and earn profit.