Professor of the University of Chicago Richard Thaler received the Nobel Prize in Economics for his pioneering work in the field of behavioral economics.
Thaler's studies are at the intersection of economics and psychology. He developed a theory of mental accounting, which explained how people simplify the adoption of financial decisions by dividing them in one's own mind, thus paying attention to the impact of each decision in particular, rather than their overall effect.
The Nobel Committee at the Royal Academy of Sciences of Sweden explained that Thaler was awarded the award, as the studies helped lead to changes in state policy.
Thaler is an American Jew. He was born in East Orange (New Jersey). Learning that he won the Nobel Prize, Thaler said that in his work he bases himself on the principle that "in order to make a good economy, you should keep in mind that people are people."
His research helps to predict the economic decisions of a person. Although people often behave irrationally, Thaler's studies have shown that we are doing this according to certain patterns.
The 72-year-old economist joked that he would spend the Nobel Prize of $ 1.1 million "as irrational as possible." Thaler also said that he would continue his research in the economy.