A NOBEL PRIZE FOR MAKING ECONOMICS MORE HUMAN
The 2017 Nobel Prize in Economic Sciences has been awarded to Richard Thaler of the University of Chicago for his pioneering work in behavourial economics
He’s made economics more human. He has provided a more realistic analysis of how people think and behave when making economic decisions. Nobel jury
stockholm — US economist Richard Thaler won the Nobel Economics prize on Monday for showing that economic and financial decision-makers 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 “a pioneer” on integrating economics and psychology.
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, social preferences, and lack of self-control, he has shown how these human traits systematically affect individual decisions as well as market outcomes,” the jury’s statement said.
“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.”
He has advised several governments, including in Denmark and France.
His work even earned him a glamorous foray into the movie
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 The Nobel jury
business when he made a cameo appearance, alongside Christian Bale, Steve Carell and Ryan Gosling, in the 2015 movie “The Big Short” about the credit and housing bubble collapse that led to the 2008 global financial crisis.
Thaler told the Nobel committee by teleconference he was “pleased” by the award.
“I no longer will have to call my colleague Eugene Fama ‘Professor Fama’ on the golf course,” he joked, referring to his University of Chicago colleague who won the prize in 2013.
“I think the most important recognition is that economic agents are human, and economic models have to incorporate that,” he said.
The 72-year-old takes home the nine million kronor ($1.1 million) prize sum, which he jokingly said he would “try to spend it as irrationally as possible.” — AFP