Netizen 24 IND: Richard Thaler wins Nobel Prize in economics

Richard Thaler wins Nobel Prize in economics Home » PoliticsLast Published: Mon, Oct 09 2017. 05 36 PM IST Richard Thaler wins Nobel Prize ...

Richard Thaler wins Nobel Prize in economics

Home » PoliticsLast Published: Mon, Oct 09 2017. 05 36 PM IST Richard Thaler wins Nobel Prize in economicsAmerican economist Richard Thaler has won the 2017 Nobel Prize in economics ‘for his contributions to behavioural economics’Jonas BergmanA file photo of Richard Thaler. Photo: Ramesh Pathania/MintA file photo of Richard Thaler. Photo: Ramesh Pathania/Mint

Oslo: University of Chicago’s Richard H. Thaler, one of the founders of behavioural economics and finance, was awarded the 2017 Nobel Prize in Economics for shedding light on how human weaknesses such as a lack of rationality and self-control can ultimately affect markets.

The 72-year-old co-author of the 2008 best-seller Nudge has †œbuilt a bridge between the economic and psychological analyses of individual decision-making,” the Royal Swedish Academy of Sciences said Monday.

“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 academy said.

His “nudge” theory, outlined along with former White House adviser Cass Sunstein, suggests small incentives can prod people into making certain decisions. His work has informed politicians looking for ways to influence voters and shape societies at a time when budget deficits limited their scope to spend. Former US President Barack Obama and former UK Prime Minister David Cameron both appointed teams to study if behavioural economics could be used to save their governments money.

For example, writing to Britons to inform them that most people in their town had already paid their taxes w as found to speed up payments. People were also found to be more likely to insulate their attics if they were offered help clearing them.

Thaler made a cameo appearance in the 2015 film The Big Short, sitting alongside actress Selena Gomez as they played blackjack.

On his website, Thaler said he investigates the implication of “relaxing” the standard economic assumption that everyone is rational and selfish, “instead entertaining the possibility that some of the agents in the economy are sometimes human”.

Thaler developed the theory of “mental accounting”, explaining how people make financial decisions by creating separate accounts in their minds, focusing on the narrow impact rather than the overall effect.

His research on “fairness”, which showed how consumer concerns may stop firms from raising prices in periods of high demand, but not in times of rising costs, has also been influential, according to the Swedish academy. He shed light on ho w people succumb to short-term temptations, which is why many people fail to plan and save for old age.

Thaler’s body of work includes insights on the ways in which limited rationality, social preferences and a lack of self control affect decisions that shape market outcomes. His other works include Quasi-Rational Economics, The Winner’s Curse: Paradoxes and Anomalies of Economic Life and Advances in Behavioral Finance.

He’s the director of the Center for Decision Research, and is the co-director, with now fellow Nobel laureate Robert Shiller, of the Behavioral Economics Project at the National Bureau of Economic Research.

Born in New Jersey, Thaler graduated with a bachelor’s degree from the Case Western Reserve University in 1967. He received a master’s degree from the University of Rochester in 1970 and a doctorate in 1974, also from Rochester. Thaler joined the University of Chicago’s Booth School of Business in 1995.

Previous winners

La st year’s economics prize went to Harvard University’s Oliver Hart and Bengt Holmstrom of the Massachusetts Institute of Technology for their work on contract theory and its role in shaping everything from executive pay to public sector privatizations. Previous laureates have included Milton Friedman, James Tobin, Paul Krugman and Friedrich August von Hayek.

Annual prizes for achievements in physics, chemistry, medicine, peace and literature were established in the will of Alfred Nobel, the Swedish inventor of dynamite, who died in 1896. The prize in economic sciences was added by Sweden’s central bank in 1968. The total amount for each of the 2017 prizes is nine million kronor ($1.1 million), up from eight million kronor last year. The economics award brings to an end this year’s Nobel prize cycle.

This year’s awards

The peace prize, which was announced in Oslo on 6 October, was awarded to the International Campaign to Abolish Nuclear Weapons “for its work to draw attention to the catastrophic humanitarian consequences of any use of nuclear weapons”.

The literature prize, announced on 5 October in Stockholm, went to Remains of the Day author Kazuo Ishiguro, for developing a style that incorporated “great emotional force” and that “uncovered the abyss beneath our illusory sense of connection with the world”, the academy said.

The chemistry prize was awarded on 4 October to Jacques Dubochet from Switzerland, Joachim Frank from Germany and Richard Henderson from the UK for developing cryo-electron microscopy for the high-resolution structure determination of biomolecules in solution.

The physics prize went to Rainer Weiss from Germany, Barry C. Barish and Kip S. Thorne, both from the US, for their “decisive contributions to the LIGO detector and the observation of gravitational waves” that had been predicted by Albert Einstein.

The medicine prize was awarded to Jeffrey C. Hall, Michael Rosbash a nd Michael W. Young, for their work on circadian rhythms, offering the world a glimpse “inside our biological clock and elucidate its inner workings”. Bloomberg

First Published: Mon, Oct 09 2017. 03 29 PM IST

Latest News »

  • Ingredients for a healthy mind
  • Nirmala Sitharaman’s visit to Nathu La strikes a chord with Chinese media
  • OPEC sees extraordinary steps needed for market stability
  • Most Gulf oil output shut, thousands in the dark as hurricane Nate weakens
  • Cap on exit penalties for traditional plans

Editor's Picks »

RBI governor Urjit Patel. The October monetary policy marked the first anniversary of the monetary policy committee. Photo: PTI

RBI governor Urjit Patel: We’ve started seeing the upturn in economic growth

Prime Minister Narendra Modi. The attention to the state of the Indian economy is welcome, but reducing it to a political blame game is not. Photo: AP

Indian economy: From policy paralysis to investment paralysis

Mahindra and Mahindra MD Pawan Goenka, along with his colleagues at Mahindra Electric, has inspected Ford’s electric vehicle platform while signing off on a partnership with the US carmaker in September. Photo: Hemant Mishra/Mint

Mahindra looks to procure Ford’s platform to build electric sedan

Mint on Sunday »

  • The beautiful game is here

  • Chasing food trucks in Pune

  • In the internet age, succeed by doing things backwards

  • The difficulty of being trustworthy

  • Letter from my new bookshelf

Mark to Market »

  • Why project pipeline, not falling tariffs, is a bigger concern for wind industry

  • The impact of demonetisation on interest rates

  • Crossing the GST river by feeling the stones

  • NHAI’s toll-operate-transfer model: More funds, more opportunity in roads

  • Is the job drought about to end?

Source: Google News

COMMENTS

Nama

Accessory,1,Apartment,1,Application,1,Automotive,3,Bank,1,Beauty,2,Board,1,Breakfast,2,Budget Living,1,Building,1,Business,2,Car Accessory,2,Car part,1,Car Shop,1,Celebrity,4,Cloth accessory,1,Cooking,1,Cover,2,Deals,1,Design,3,Digital Life,1,Dinner,1,Dish Review,2,DIY Projects,3,Economy,2,Education,2,Engine,1,Entertainment,1,Expert Advices,2,Fashion,2,Financial,1,Food,3,Football,1,Games,1,Gossip,1,Heath,1,Hotels,1,House,2,Individual,1,Inspiration,2,Latin,1,Lifestyle,6,Live Show,1,Love,1,Lunch,2,Model,1,Music,2,Nutrition,1,Olympic,1,Politics,1,Pop Shop,1,Rock,1,Sports,1,Startup,1,Stock,1,Tech Review,1,Tech Tips,1,Technology,2,Tennis,1,Tone Set,1,Travel,1,Trip Ideas,1,Vogue,1,Weather,1,Wedding,1,World,3,
ltr
item
Netizen 24 India: Netizen 24 IND: Richard Thaler wins Nobel Prize in economics
Netizen 24 IND: Richard Thaler wins Nobel Prize in economics
http://www.livemint.com/rf/Image-621x414/LiveMint/Period2/2017/10/10/Photos/Processed/richardthaler-k7bF--621x414@LiveMint.jpg
Netizen 24 India
http://www.india.netizen24.com/2017/10/netizen-24-ind-richard-thaler-wins.html
http://www.india.netizen24.com/
http://www.india.netizen24.com/
http://www.india.netizen24.com/2017/10/netizen-24-ind-richard-thaler-wins.html
true
5433794195654824048
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy