Richard Thaler has been awarded the Nobel Memorial Prize in Economic Sciences 2017 for his contributions to the field of behavioral economics.

In a press release announcing the winner, the Royal Swedish Academy of Sciences praised his work and said his contributions “have built a bridge between the economic and psychological analyses of individual decision-making” ushering in a “new and rapidly expanding field of behavioral economics, which has had a profound impact on many areas of economic research and policy.” (See also: Richard Thaler: The Founding Father of Behavioral Finance)

Per Strömberg, the chairman of the Economic Sciences Prize Committee, said insights from behavioral economics have not only been important for academic research, but have also helped policy makers. (See also: 5 Nobel Prize-Winning Economic Theories You Should Know About)

Thaler, 72, is currently a professor of behavioral science and economics at the University of Chicago. He developed the theory of mental accounting, which explained how humans compartmentalize their income and spending, and observed that people value something more when they own it than when they don't, something he called the endowment effect

He is the author of bestselling books "Misbehaving: The Making of Behavioral Economics" and "Nudge: Improving Decisions About Health, Wealth and Happiness."

In an interview with the BBC, Thaler said he will spend the 9 million Swedish krona he gets from the committee “as irrationally as possible.”

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