In 1989, to explain some of these inefficiencies, the economist James Andreoni proposed a different model for why we donate to charity. Instead of acting strictly to improve the well-being of others,18 Andreoni theorized, we do charity in part because of a selfish psychological motive: it makes us happy. Part of the reason we give to homeless people on the street, for example, is because the act of donating makes us feel good, regardless of the results.
