American Richard H. Thaler wins Nobel Prize in economics
Poriborton Desk 5:50 pm, October 09, 2017
Richard H. Thaler of the University of Chicago was awarded the Nobel Prize in economics on Monday for his contributions to the field of behavioral economics. Thaler was cited for his research in the psychology of economic decision-making.
His theory explains "how people simplify financial decision-making by creating separate accounts in their minds, focusing on the narrow impact of each individual decision rather than its overall effect," the Royal Swedish Academy of Sciences said, reports CNN Money.
The Royal Swedish Academy of Sciences every year awards the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
Last year, two foreign-born American professors were awarded the prize for their contributions to contract theory -- the agreements that shape business, finance and public policy.
The winners were Oliver Hart, now 69, a British born economist teaching at Harvard, and Bengt Holmström, 68, a Finnish economist teaching at MIT.
Hart's research had found that that privatizing government functions such as schools, hospitals and prisons lead to a reduction in quality greater than the advantages of cost savings. Holmström's research focused on employment contracts, including between CEOs and shareholders.
The 2013 award went to Robert Shiller, known for his work on bubbles in financial and real estate markets. His name is on a closely followed measure of U.S. home prices.
And the 2008 prize went to Paul Krugman, a liberal columnist for The New York Times and a Princeton professor who won for his work on trade patterns and location of economic activity.
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