Man is a rational being in pursuit of personal interests – at least that is what classical economics teaches us. But policy-makers are increasingly using our irrational tendencies to nudge us into a certain direction.
There’s something deeply flawed about an economic system that measures utility but not the attachments we feel to another person, or to one’s homeland.
Don’t rely on economic analysis to learn about human rationality. If we want to build just and prosperous societies, we must look elsewhere for guidance.
What can patterns of cheating in online courses tell us about man’s irrational inclinations?
In recent years, economic thinkers have embraced policies that “nudge” us into acting wisely. It’s time for European policy-makers to catch up.
“The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design”, F.A. Hayek once wrote. We would be well-served to heed his call and reinvigorate the ideology of the free market.