Thursday, 27 October 2016

Charity begins at the profit function

When firms offer up a percentage of their revenue to charity, is this a purely altruistic act? Adriaan Soetevent explains how, given a high enough offer, companies can actually make more money out of the higher sales caused by the arrangement. Filmed at the European Economic Association's 2016 Congress in Geneva.

The invisible hand in action? Firms gain but charities also gain. A win-win for society.

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