And The Nobel Prize For Economics Goes To ... Richard Thaler

United States economist Richard Thaler today (9 October) won the Nobel Economics Prize for his pioneering work to bridge the gap between economics and psychology, the jury 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," the Nobel jury said in a statement.

Thaler, a professor at the the University of Chicago Booth, co-wrote the global best seller Nudge, which looks at how people make bad choices. It subsequently spawned the "nudge theory" of how to help people make better life decisions.

The Nobel panel said that his work had contributed to a better understanding of the psychology of economics. Per Stroemberg of the Royal Swedish Academy of Sciences said that his work had explored how specific aspects of human psychology shape various economic decisions.

"Richard Thaler's findings have inspired many other researchers coming in his footsteps and it has paved the way for a new field in economics which we call behavioural economics," Stroemberg said.

Also Read: What The Nobel Prize Tells Us About The State Of Economics