image: This is the 2017 Sveriges Riksbank Prize in Economic Sciences. view more
Credit: Ill. N. Elmehed
The 2017 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Richard H. Thaler of the University of Chicago "for his contributions to behavioral economics." Thaler's research incorporates findings from psychology into the analysis of economic decision-making. Examples include the examination of extreme sensitivity to losses relative to gains on financial decisions and how perceptions of fairness affect consumers' purchase decisions and limit the ability of firms to change prices.
The National Science Foundation (NSF) supported Thaler for research into investor decisions in retirement planning. This project helped to establish behavioral analysis of financial markets.
NSF Director France Córdova issued the following statement on the announcement:
The groundbreaking work of Richard Thaler has helped launch behavioral economics as a field of basic research. NSF is proud to have supported his work on how individuals rely on short-term horizons in making financial decisions that have long-term consequences for market outcomes. His work has been used by governments and employers around the world to make it easier for people to achieve their goals for health and retirement.
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