Are humans really rational?



 Classical economics thought that humans are economically rational. They used the term "Homo Economicus" and said that human make decisions rationally by considering their economic benefits. 

But even the Adam Smith the man who considered as one of the founder of Homo Economicus theory said that human make decisions not only by economic rationality. He said that sympathy, altruism, and goodwill are also impact on the human decision. You can see this in his book <The Theory of Moral Sentiments>(1759). 

Recently in south korea the books about behavioral economics were very popular. Behavioral economics debunked the concept of Homo Economicus very well. There are plenty of example in the book name <Nudge: Improving Decisions About Health, Wealth, and Happiness>.

I think crypto currency is also good examples. Most of crypto investors doesn't know what they invested in. And we have seen what is the consequences very enough.

Not only in the market we can see the irrationality of human in the government too. Twenty years ago and a week more ago. At this they usa politicans decided to invade Iraq. They decide this by the unreliable information provided by Iraqi defectors. The result is death of 1 million Iraqi and damage of usa.

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