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 https://www.theguardian.com/world/2017/oct/09/what-is-behavioural-economics-richard-thaler-nobel-prize

The article has changed 5 times. There is an RSS feed of changes available.

Version 0 Version 1
What is behavioural economics? What is behavioural economics?
(35 minutes later)
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. Behavioural economics incorporates the study of psychology into the analysis of the decision-making behind an economic outcome, such as the factors leading up to a consumer buying one product instead of another.
The US academic Richard Thaler was awarded the Nobel prize in economics for his pioneering work in this field on Monday. The Royal Swedish Academy of Sciences, which awarded the £845,000 prize, praised Thaler for incorporating psychological assumptions into analyses of economic decision-making. The US academic Richard Thaler won the Nobel prize in economics on Monday for his pioneering work in this field. The Royal Swedish Academy of Sciences, which awarded the £845,000 prize, praised Thaler for incorporating psychological assumptions into analyses of economic decision-making.
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. Unlike the field of classical economics, where decision-making is entirely based on cold-headed logic, behavioural economics allows for irrational behaviour 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. 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. Brexit is one example of how behavioural economics can be useful. Thaler has suggested that the theory can help explain how the narrow vote to leave the EU 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. The theory is particularly useful for companies and marketers looking to increase 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. Thaler is particularly well known for his work on “nudge theory”, a term 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.