World
Richard Thaler won for his contributions in field of behavioural economics.
Updated : Oct 09, 2017, 05:23 PM IST
US economist Richard Thaler won the 2017 Nobel Economics Prize for his contributions in the field of behavioural economics. He incorporated insights from psychology to traditional economics. According to the Nobel citation, he analysed how human behaviour is influenced by three aspects of psychology which are cognitive limitations (or
bounded rationality), self-control problems, and social preferences.
So it was only usual that Richard Thaler used an oft repeated word in his research when asked how he will use his prize money.
Here's what he said:
“I will try to spend it as irrationally as possible!” – Richard Thaler on whether or not he will act 'humanly' in spending the prize money.
— The Nobel Prize (@NobelPrize) October 9, 2017
Thaler brought to prominence the idea of "nudge" economics, where humans are subtly guided toward beneficial behaviours without heavy-handed compulsion, the theme of a 2008 book he co-wrote which caught the eye of policymakers around the world.
"In total, Richard Thaler's contributions have built a bridge between the economic and psychological analyses of individual decision-making," the award-giving body said on announcing the 9 million Swedish crown ($1.1 million) prize. "His empirical findings and theoretical insights have been instrumental in creating the new and rapidly expanding field of behavioural economics, which has had a profound impact on many areas of economic research and policy."
With Reuters inputs