21
Wednesday
February 2018
2:54 AM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | About Deepika 
International News
Richard Thaler wins Nobel Prize in economics
 
(New Delhi, Oct 09, 2017):The Nobel Prize for Economics was on Monday awarded to Richard H Thaler. Thaler is professor at the University of Chicago for his “contribution to behavioural economics”. “He’s made economics more human,” the Nobel jury said, calling Thaler “a pioneer” on integrating economics and psychology.

Born 1945 in East Orange, Professor Thaler has been awarded the Nobel Prize for his work on integrating economics with psychology. In a statement, issued, the The Royal Swedish Academy of Sciences said that the Sveriges Riksbank Prize in Economic Sciences, in memory of Alfred Nobel 2017, has been awared to Richard H Thaler for having 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,” the statement read.

Over the last few days, former RBI Governor and renowned economist Raghuram Rajan was also among those speculated to having been nominated for the top prize. The Nobel Prize Committee does not reveal the names of those nominated for 50 years.

“His empirical findings and theoretical insights have been instrumental in creating the new and rapidly expanding field of behavioural economics, which has had a profound impact on many areas of economic research and policy.”

His work even earned him a glamorous foray into the movie business when he made a cameo appearance, alongside Christian Bale, Steve Carell and Ryan Gosling, in the 2015 movie “The Big Short” about the credit and housing bubble collapse that led to the 2008 global financial crisis. Thaler told the Nobel committee by videoconference he was “pleased” by the award.

“Well, I was pleased. I no longer will have to call my colleague Eugene Fama ‘Professor Fama’ on the golf course,” he joked, referring to his University of Chicago colleague who won the prize in 2013.
“I think the most important recognition is that economic agents are human, and economic models have to incorporate that,” he said. The 72-year-old takes home the nine million kronor (USD 1.1 million) prize sum.

Thaler is a professor at the University of Chicago – a school popular with the Nobel economics committee. Of 79 laureates so far, more than a third have been affiliated with the university’s school of economics.
One of the founders of behavioural finance, which studies how cognitive limitations influence financial markets, Thaler developed a model for explaining how people tend to focus on the narrow impact rather than the overall effect of each decision they make, which is called limited rationality.

This includes the study of how people’s loathing of losses can explain why they value the same things more when they own them as opposed to when they don’t, which is called the endowment effect.

Influential in theoretical and experimental research on fairness, Thaler showed “how consumers’ fairness concerns may stop firms from raising prices in periods of high demand, but not in times of rising costs”, the Nobel economics committee said in a statement.

Along with his colleagues, Thaler created a tool called “the dictator game” that was used in several studies to measure people’s attitudes to fairness from around the world.

And what about keeping New Year’s resolutions? Thaler has shown that they can be hard to keep — no matter how much people wish to fulfil them.

Using a planner-doer model, Thaler showed how short-term temptations disrupt people’s plans to save for their old age, rainy days or live a healthier lifestyle.

“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,” the Nobel jury said.

Fittingly, Thaler’s family name comes from the Germanic word for “dollar”.

Last year, the Nobel Economics Prize went to British-American economist Oliver Hart and Bengt Holmstrom of Finlandfor their research on contract theory, which has helped design insurance policies and executive pay.

The economics prize is unique among the Nobel awards in that it was created by the Swedish central bank in 1968 — the others were all set up through the 1895 will of Swedish inventor and philanthropist Alfred Nobel.


Palestinian leader goes to the UN to counter US on Jerusalem
Maldives leader seeks approval to extend state of emergency
Imran Khan ties knot for third time, confirms party
Lanka Army enlists 11 former LTTE members
All 65 passengers, crew feared dead in Iranian plane crash
Saudi women to start own business without male permission
Indian-Origin Officer Neil Basu In The Running For Scotland Yard Anti-Terror Chief
Pakistan minor's killer gets four death sentences
FBI warned about Florida gunman but failed to act
Turkey seeks 18 years jail for German-Turkish journalist
Thailand decorates Myanmar's army chief amid Rohingya crisis
Pakistan claims destroying Indian Army post, killing 5 soldiers
Coach, immigrant, star swimmer: the Florida shooting victims
Cyril Ramaphosa elected as South Africa's president
Indian faces jail, caning for bid to kill student nurse
2 Indians sentenced for smuggling fake cigarettes into US
South Africa's Jacob Zuma resigns as president
17 killed in Florida school shooting by former student: sheriff
Sharif says his opponents would fail to punish him
Afghan officials and Taliban talk despite wave of violence
ENTERTAINMENT NEWS
New poster of Irrfan Khan Starrer 'Blackmail released
 (Feb 17, 2018): After receiving an incredible response on the teaser of the film, the makers  
Justin Bieber to take part in NBA celebrity game
Trailer of 'Pari' out !
Filmmaker Sajid Nadiadwala gets honoured by Italian Consulate
KERALA NEWS
'Kudumbashree' to foray into e-commerce
 (Thiruvananthapuram, Feb 20, 2018): After its success saga in a series of fields ranging from
Pandalam woman jumps to death from hospital building
SC to hear tomorrow actress Priya Varrier's plea
Shuhaib murder: Police find crucial lead
NATIONAL NEWS
J-K youths, children meet President
 (New Delhi, Feb 20, 2018): Youths and children, who were hit by militancy in Jammu and Kashm
SBI Card cautions customers against Bitcoin investment
Cong, CPI-M demand discussion on PNB fraud
CBI refuses to disclose expenses incurred to bring back Vijay Mallya, Lalit Modi
Untitled Page
Rashtra Deepika LTD
Copyright @ 2017 , Rashtra Deepika Ltd.