US econ­o­mist Thaler wins No­bel for ‘mak­ing eco­nom­ics more hu­man’

Muscat Daily - - FRONT PAGE -

Stockholm, Swe­den - US econ­o­mist Richard Thaler won the No­bel Eco­nom­ics prize on Mon­day for show­ing that eco­nomic and fi­nan­cial de­ci­sion­mak­ers are not al­ways ra­tio­nal, but mostly deeply hu­man.

Bridg­ing the gap be­tween eco­nom­ics and psy­chol­ogy, Thaler’s re­search fo­cuses on be­havioural eco­nom­ics which ex­plores the im­pact of psy­cho­log­i­cal and so­cial fac­tors on de­ci­sions by in­di­vid­u­als or groups in the econ­omy and fi­nan­cial mar­kets. “He’s made eco­nom­ics more hu­man,” the No­bel jury said, call­ing.

Thaler is well-known for co­found­ing the “nudge” the­ory, which demon­strates how peo­ple can be per­suaded to make de­ci­sions that leave them health­ier and hap­pier.

“By ex­plor­ing the con­se­quences of lim­ited ra­tio­nal­ity, so- cial pref­er­ences, and lack of self­con­trol, he has shown how th­ese hu­man traits sys­tem­at­i­cally af­fect in­di­vid­ual de­ci­sions as well as mar­ket out­comes,” the jury’s state­ment said.

He has ad­vised sev­eral gov­ern­ments, in­clud­ing in Den­mark and France.

(AFP)

Richard Thaler

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