Nobel Prize for Contribution to Behavioral Economics
Art And Culture

Nobel Prize for Contribution to Behavioral Economics

The 2017 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel was awarded to American economist Richard H. Thaler from University of Chicago “for his contributions to behavioral economics”.
Thaler, 72, has incorporated psychologically realistic assumptions into analyses of economic decision-making. 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, according to Bobelprize.org.

  Limited Rationality
Thaler developed the theory of ‘mental accounting,’ explaining 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.
He also showed how aversion to losses can explain why people value the same item more highly when they own it than when they don’t, a phenomenon called the ‘endowment effect.’ Thaler was one of those who founded the field of behavioral finance, which studies how cognitive limitations influence financial markets.
Thaler’s theoretical and experimental research on ‘fairness’ has been influential. He showed how consumers’ fairness concerns may stop firms from raising prices in periods of high demand, but not in times of rising costs. Thaler and his colleagues devised the ‘dictator game,’ an experimental tool that has been used in numerous studies to measure attitudes to fairness in different groups of people around the world.

  Lack of Self-Control
Thaler has also shed new light on the old observation that New Year’s resolutions can be hard to keep. He showed how to analyze self-control problems using a ‘planner-doer model,’ which is similar to the frameworks psychologists and neuroscientists, now use to describe the internal tension between long-term planning and short-term doing.
Succumbing to short-term temptation is an important reason why our plans to save for old age, or make healthier lifestyle choices, often fail. In his applied work, Thaler demonstrated how ‘nudging’ - a term he coined - may help people exercise better self-control when saving for a pension, as well in other contexts.
In total, Thaler’s contributions have built a bridge between the economic and psychological analyses of individual decision-making. His empirical findings and theoretical insights have been instrumental in creating the new and rapidly expanding field of behavioral economics, which has had a profound impact on many areas of economic research and policy.

Short URL : https://goo.gl/gxBnM6
  1. https://goo.gl/KLBsh2
  • https://goo.gl/Zpntww
  • https://goo.gl/DcEKcK
  • https://goo.gl/Lp6fnZ
  • https://goo.gl/hakojX

You can also read ...

From left: Writer Robert McCrum selected “In a Free State” from the 1970s. Poet Lemn Sissay chose the winner from the 1980s, selecting “Moon Tiger.” Novelist Kamila Shamsie selected “The English Patient” as best work of the 1990s. “Wolf Hall” was selected by radio presenter Simon Mayo as the best novel of the 2000s, and “Lincoln in the Bardo” was chosen by poet and author Hollie McNish.
Five books were shortlisted for the “Golden” Man Booker...
“King Astyages Sending Harpagus to Kill Young Cyrus” by French painter Jean Charles Nicaise Perrin (1754-1831)
Iranian-Armenian composer and orchestra conductor Loris...
Fariba Vafi’s Novel Translated  Into Spanish
Famous Persian novel “My Bird” written by the contemporary...
Graffiti & Street Art
A group exhibition of street art is underway at Seyhoun Art...
Semi-Abstract Paintings
Haft Samar Art Gallery is hosting a solo exhibition of...
2 Exhibitions in Kish Promoting Organ Donation
Kish Island in the Persian Gulf is hosting two exhibitions to...
Vuillard’s “Order of the Day”  in Persian
The winner of the 2017 Prix Goncourt, a prize in French...
Ardeshir Kamkar to Hold Kamancheh Workshop in Yazd
Veteran musician Ardeshir Kamkar will conduct a two-day...

Add new comment

Read our comment policy before posting your viewpoints