2017 Nobel Prize in Economic Sciences Current Affairs

Richard H. Thaler wins 2017 Nobel Prize in Economic Sciences

American economist Richard H. Thaler has won 2017 Nobel Prize in Economic Sciences for his contributions to behavioural economics. He will receive 9-million-kronor ($1.1-million) prize.

Thaler is Professor of Behavioral Science and Economics at University of Chicago Booth School of Business. He is co-author (with Cass R. Sunstein) of global best seller Nudge (2008) in which concepts of behavioral economics are used to tackle many of society’s major problems.

Richard H. Thaler’s Contribution

He has done pioneering work to bridge gap between economics and psychological analyses of individual decision-making. He has incorporated psychologically realistic assumptions into analyses of economic decision-making. He has brought to prominence idea of “nudge” economics, where humans are subtly guided toward beneficial behaviors without heavy-handed compulsion

His empirical findings and theoretical insights have been instrumental in creating new and rapidly expanding field of behavioural economics, which has profound impact on many areas of economic research and policy. He has shown how human traits systematically affect individual decisions as well as market outcomes, by exploring consequences of limited rationality, social preferences, and lack of self—control.

Nobel Prize in Economic Sciences

The economics prize, officially called Sveriges Riksbank (Swedish National Bank) Prize in Economic Sciences in Memory of Alfred Nobel was established in 1968. It was not part of the original group of awards set out in dynamite tycoon Alfred Nobel’s 1895 will. 2016 prize was shared by Oliver Hart and Bengt Holmström for their contributions to contract theory. Indian economist Amartya Sen had won Nobel Prize in Economic Sciences in 1998 for his contributions to welfare economics.