This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/world/2017/oct/09/nobel-prize-in-economics-richard-thaler

The article has changed 6 times. There is an RSS feed of changes available.

Version 1 Version 2
Nobel prize in economics awarded to Richard Thaler Nobel prize in economics awarded to Richard Thaler
(about 1 hour later)
The 2017 Nobel prize in economics has been awarded to the US academic Richard Thaler of the University of Chicago for his contribution to behavioural economics.The 2017 Nobel prize in economics has been awarded to the US academic Richard Thaler of the University of Chicago for his contribution to behavioural economics.
The prize, worth 9m Swedish kroner (£845,000), is not among the Nobel Foundation’s official awards for literature, peace, medicine, physics and chemistry, but was established separately by Sweden’s central bank, Sveriges Riksbank, in memory of the Swedish chemist Alfred Nobel.The prize, worth 9m Swedish kroner (£845,000), is not among the Nobel Foundation’s official awards for literature, peace, medicine, physics and chemistry, but was established separately by Sweden’s central bank, Sveriges Riksbank, in memory of the Swedish chemist Alfred Nobel.
The Royal Swedish Academy of Sciences described Thaler as a pioneer of behavioural economics, which had progressed in recent years from a fringe and somewhat controversial field of research into a mainstream component of the economics profession.The Royal Swedish Academy of Sciences described Thaler as a pioneer of behavioural economics, which had progressed in recent years from a fringe and somewhat controversial field of research into a mainstream component of the economics profession.
Behavioural economics incorporates the study of psychology into the analysis of decision-making behind an economic outcome – such as the factors leading up to a consumer buying one product instead of another.
Unlike the field of classical economics – whereby decision-making is entirely based on cold-headed logic – behavioural economics allows for irrational behaviours and attempts to understand why this might be the case. The concept can be applied in miniature to individual situations, or more broadly to encompass the wider actions of a society or trends in financial markets.
Brexit is one example of how behavioural economics can be useful. As a pioneer of the subject, Thaler has suggested the theory can help explain how the narrow vote to leave the European Union was influenced by gut choices, as opposed to rational decision-making. 
The theory is particularly useful for companies and marketeers looking to boost sales by encouraging changes in behaviour by consumers. It can also be used for the purposes of setting public policy.
Thaler is particularly well-known for his work on “nudge theory,” a term that he coined to help explain how small interventions can encourage individuals to make different decisions. Nudges can, however, be manipulative to the detriment of individuals.
His research was praised for incorporating psychological assumptions into analyses of economic decision-making. The prize-givers said his work had shown how the limitations of an individual’s knowledge in the decision-making process, as well as the consequences of social preferences and a lack of self control, can affect people’s decisions as well as market outcomes.His research was praised for incorporating psychological assumptions into analyses of economic decision-making. The prize-givers said his work had shown how the limitations of an individual’s knowledge in the decision-making process, as well as the consequences of social preferences and a lack of self control, can affect people’s decisions as well as market outcomes.
Thaler, born in New Jersey in 1945, is a career academic and a Charles R Walgreen distinguished service professor of behavioural science and economics, and the director of the Center for Decision Research at the University of Chicago’s Booth School of Business. He made a cameo appearance in the 2015 film The Big Short, sitting beside Selena Gomez at a blackjack table.Thaler, born in New Jersey in 1945, is a career academic and a Charles R Walgreen distinguished service professor of behavioural science and economics, and the director of the Center for Decision Research at the University of Chicago’s Booth School of Business. He made a cameo appearance in the 2015 film The Big Short, sitting beside Selena Gomez at a blackjack table.
He is a leading proponent of “nudge theory”, a concept of behavioural science that suggests small interventions in the environment, or incentives, can encourage people to make different decisions. Thaler co-authored a book, Nudge: Improving Decisions about Health, Wealth, and Happiness, with the US professor Cass Sunstein, which brought the subject to a wider audience in 2008.He is a leading proponent of “nudge theory”, a concept of behavioural science that suggests small interventions in the environment, or incentives, can encourage people to make different decisions. Thaler co-authored a book, Nudge: Improving Decisions about Health, Wealth, and Happiness, with the US professor Cass Sunstein, which brought the subject to a wider audience in 2008.
The prize-givers said his research was often cited in marketing literature, while his insights helped people recognise marketing tricks and avoid bad economic decisions. They said his work had made a “profound impact on many areas of economic research and policy”.The prize-givers said his research was often cited in marketing literature, while his insights helped people recognise marketing tricks and avoid bad economic decisions. They said his work had made a “profound impact on many areas of economic research and policy”.
There have been 78 previous winners of the cash prize and medal, which has become a significant honour for economists since it was established in 1968.There have been 78 previous winners of the cash prize and medal, which has become a significant honour for economists since it was established in 1968.