Richard Thaler

{{jpg-image} Richard H. Thaler (September 12, 1945) is an American economist known for his contributions to behavioral economics. He is the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business. Thaler was awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 2017 for his contributions to behavioral economics, a field that merges insights from psychology and economics to investigate how individuals make economic decisions.

Early Life and Education

Richard H. Thaler was born in East Orange, New Jersey, on September 12, 1945. He attended Case Western Reserve University, where he received a bachelor's degree in 1967. He went on to earn a master's degree in 1970 and a Ph.D. in 1974, both in economics, from the University of Rochester.

Career

Thaler's early work in the field of economics was influenced by the psychological realism in decision-making. He is credited with pioneering contributions to the field of behavioral economics, particularly in the areas of limited rationality, lack of self-control, and social preferences. Thaler has written several books and numerous articles on the subject. His most notable works include The Winner's Curse: Paradoxes and Anomalies of Economic Life and Nudge: Improving Decisions About Health, Wealth, and Happiness, the latter co-authored with Cass Sunstein. Nudge has been influential in policy-making, introducing the concept of "libertarian paternalism" and how small design changes can significantly affect people's behavior without restricting freedom of choice. Thaler's research has had a profound impact on various fields, including public policy, finance, and marketing, by demonstrating how understanding human behavior can improve economic models, predictions, and policies. He has served as the president of the American Economic Association and has been a member of the National Academy of Sciences.

Nobel Prize

In 2017, Richard H. Thaler was awarded the Nobel Prize in Economic Sciences for his contributions to behavioral economics. The Nobel committee highlighted his work in integrating economics with psychology, especially concerning his analysis of decision-making, biases, and nudges.

Personal Life

Richard Thaler is married and resides in Chicago. He is known for his engaging teaching style and for making economics accessible to a broad audience through his books and public speaking.

Legacy and Influence

Thaler's work has significantly influenced not only economics but also public policy, law, and business. By demonstrating that economic agents are not always rational and that markets are not always efficient, he has helped to create more realistic and effective economic models and policies. His concept of nudges has been applied in various domains, including health care, education, and environmental policy, to improve outcomes by subtly guiding human behavior.

Selected Publications

• The Winner's Curse: Paradoxes and Anomalies of Economic Life
• Nudge: Improving Decisions About Health, Wealth, and Happiness (co-authored with Cass Sunstein)
• Misbehaving: The Making of Behavioral Economics

See Also

• Behavioral economics
• Nudge theory
• Cass Sunstein
• Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel