Oct. 9, 2017 , 5:52 AM
Richard Thaler, an economist at University of Chicago, has been awarded the 2017 prize in economics “for his contributions to behavioural economics.”
The Royal Swedish Academy of Sciences highlighted three areas in which Thaler’s research has added aspects of human psychology into economics. As a founder of the field of behavioral finance, Thaler demonstrated some of the limitations people typically have with managing their finances. He also helped explain the impact of social preferences, such as for fairness, which can influence companies. Finally, Thaler has probed problems of self-control and how this has long-term consequences. Thaler is perhaps best known for an approach to interventions, called “nudging,” which are designed to make self-control easier, for example by requiring people to opt out of pension contributions.
Thaler will receive 9 million krona for the prize. “I will try to spend it as irrationally as possible,” he said by telephone at the press conference.
Please check back for a fuller description of Thaler’s research.
Source: Science Mag