Nobel in Economics Is Awarded to Richard Thaler
Original story at nytimes.com• 4 mentions • 1 week ago
nytimes.com 1 week ago
The economics prize was established in 1968 in memory of Alfred Nobel and is awarded by the Royal Swedish Academy of Sciences. Mainstream economics for much of the 20th century was based on the simplifying assumption that people behaved rationally. Economists understood that this was not literally true, but they argued that it was close enough. Professor Thaler played a central role in arguing that seemingly irrational behavior could not be ignored and that people are not rational even when they try to be. For example, when gas prices decline, classic economics teaches that people will use the savings for ...