The 2017 Nobel Prize for Economics has been awarded to Richard H. Thaler “for his contributions to behavioral economics.”
A media release by the Royal Swedish Academy of Sciences said, “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.”
Dr. Thaler has made major contributions to expand the field of behavioral economics. He has been successful in building a bridge between the economic and psychological analyses of individual decision making.
Dr. Thaler is a Professor at the University of Chicago, Booth School of Business where he teaches Behavioral Science and Economics. His contributions have also extended to the written word as he co authored Nudge in 2008 with Cass R. Sunstein, which was a global best seller. The book discusses the concepts of behavioral economics and how they can be used to tackle society’s major problems.
To give you an idea of Richard Thaler’s thought process, here is a quote from the book Nudge, “We are also greatly influenced by consumption norms within the relevant group. A light eater eats much more in a group of heavy eaters. A heavy eater will show more restraint in a light eating group. The group average thus exerts a significant influence. But there are gender differences as well. Women often eat less on dates; men tend to eat a lot more, apparently with the belief that women are impressed by a lot of manly eating. (Note to men: they aren’t.”)
The Nobel Prize comes with a huge honor as well as a $ 1.1 million cash prize.
