Published: Tue, October 10, 2017
Money | By Armando Alvarado

University of Chicago's Thaler wins Nobel Prize in Economics

University of Chicago's Thaler wins Nobel Prize in Economics

According to a report in Economic Times, the government has been following this policy since a year ago when Niti Aayog joined hands with the Bill and Melinda Gates Foundation to set up a "nudge unit", that would work towards achieving behavioural changes that would make programmes and policies of the government more effective. Thaler's research has helped economists understand that "human behavior often contradicts traditional economic logic", according to a University of Chicago news release. The San Mateo, California-based firm also runs the $240 million Fuller & Thaler Behavioral Small-Cap Equity Fund.

On Monday, the 2017 Economic Sciences Nobel prize was awarded to Richard H. Thaler, a professor at University of Chicago, USA, for his contributions to behavioural economics by the Royal Swedish Academy of Sciences. The value fund has gained an annual average of 16 percent, beating 97 percent of rivals, and is up 8.1 percent this year through October 9.

Thaler told the Nobel committee by videoconference he was "pleased" by the award.

Richard Thaler, of the University of Chicago, was speaking in a phone call to a news conference immediately after the Nobel committee announced he is the victor of this years 9-million-kronor ($1.1-million) prize.

NVIDIA Corporation (NVDA) Releases Advanced New Self-Driving Car Chip
NVIDIA DRIVE PX Pegasus delivers over 320 trillion operations per second - more than 10x its predecessor, NVIDIA DRIVE PX 2 . Now Nvidia unveils a new supercomputer that it believes will enable level 5 autonomous driving.

While she says it's hard to overcome some of these tendencies outlined in Thaler's research, Madrian says "the key is to recognize your shortcomings and then try to set yourself up to limit their effects when you're not in a vulnerable situation".

The last of the Nobel prizes to be awarded this year is something of an outlier — Alfred Nobels will didnt call for its establishment and it honors a science that many doubt is a science at all. Thaler has always been known for challenging a foundational concept in mainstream economics, namely, that people by-and-large behave rationally when making purchasing and financial decisions.

The Nobel committee said Thalers work shows how human traits affect individual decisions as well as market outcomes.

Like this: