I would like to distinguish between money burnt and money transferred. The $500 are burnt, assuming you handpicked homegrown cotton and knitted it into clothes. The $1000 are also burnt, assuming that nobody extracts rent on saving children. The $600 are merely transferred, and so the altruist may be willing to pay more even than $1000, if he expects the profits spent in ways he still moderately endorses.
I would like to distinguish between money burnt and money transferred. The $500 are burnt, assuming you handpicked homegrown cotton and knitted it into clothes. The $1000 are also burnt, assuming that nobody extracts rent on saving children. The $600 are merely transferred, and so the altruist may be willing to pay more even than $1000, if he expects the profits spent in ways he still moderately endorses.