Richard Thaler of USA wins Nobel Economics Prize

Keith Morris News  Alamy Stock

Keith Morris News Alamy Stock

If so, you've effectively broken the laws of traditional economics, but you've also confirmed over 40 years of research by American economist Richard Thaler.

"We buy on people overreacting to bad news, or when they underreact to good news", said lead portfolio manager Raife Giovinazzo, who had Thaler as his Ph.D. advisor at the University of Chicago, and Nobel prize victor Daniel Kahneman as his thesis adviser at Princeton University. He shed light on how people succumb to short-term temptations, which is why many people fail to plan and save for old age.

Richard Thaler works as a professor of Behavioral Science and Economics at the University of Chicago. Other books include "Quasi-Rational Economics", "The Winner's Curse: Paradoxes and Anomalies of Economic Life" and "Advances in Behavioral Finance".

Thaler was born 1945 in East Orange, New Jersey and received his Ph.D.in 1974 from the University of Rochester, New York.

Thaler told the Nobel committee by videoconference he was "pleased" by the award.

And here's how Thaler had welcomed the reports that former RBI governor Raghuram Rajan was all set to rejoin University of Chicago Booth School of Business as a Professor, after completing his term at India's central bank.

The Swedish Academy of Sciences said Thalers research has built a bridge between the economic and psychological analyses of individual decision-making. Three of the prize committees are within the sciences academy.

The Swedish National Bank Prize in Economic Sciences in Memory of Alfred Nobel was first granted to its first recipients, Ragnar Frisch of Norway and Jan Tinbergen of the Netherlands, nearly 70 years after the series of prestigious prizes that Nobel helped establish through funding set aside in his will.

The 9-million-kronor ($1.1-million) prize was awarded to the academic for his "understanding the psychology of economics", Swedish Academy of Sciences secretary Goeran Hansson said Monday.

The physics prize went to Rainer Weiss from Germany, Barry C. Barish and Kip S. Thorne, both from the US, for their "decisive contributions to the LIGO detector and the observation of gravitational waves" that had been predicted by Albert Einstein.

Recommended News

  • Police issue warrant for black man beaten at Virginia rally

    Police issue warrant for black man beaten at Virginia rally

    The magistrate's office called the police department to confirm the facts, and they then issued the warrant. Harris was participating in the counter-protest during the "Unite the Right" rally on August 12.
    'This hypocrisy is appalling' Bombardier slammed with additional 80% duty

    'This hypocrisy is appalling' Bombardier slammed with additional 80% duty

    The duties are expected to heighten trade tensions between the United States, Canada and Britain, where CSeries wings are made. Boeing, the world's largest plane maker, hailed the decision and hinted at an alternative for Bombardier.
    Flu Shot Essential for People With Diabetes

    Flu Shot Essential for People With Diabetes

    People 65 or older should talk to their doctor to see if the high-dose flu vaccine is right for them. Avoiding the flu can help people with diabetes stay on track and manage the condition.
  • IMF Raises Global Growth Forecasts, But Says Recovery Incomplete

    IMF Raises Global Growth Forecasts, But Says Recovery Incomplete

    In July, the Bank of Korea marked up its growth outlook for this year to 2.8 percent from its previous estimate of 2.6 percent. The Goods and Services Tax (GST) was implemented in India from July 1 this year.
    Prince Harry launching mental health campaign for British soldiers

    Prince Harry launching mental health campaign for British soldiers

    We surely have to think of them as high performance athletes, carrying all their kit, equipment and a rifle. PRINCE Harry yesterday launched a new mission to boost Our Boys and Girls' "mental fitness".
    ESPN suspends Jemele Hill when her politics threaten their bottom line

    ESPN suspends Jemele Hill when her politics threaten their bottom line

    Trump is referring to ESPN's steady ratings decline over the past few years, largely due to customers "cutting the cord" on cable. Her comments were found to be too controversial this time. "My respect for the company and my colleagues remains unconditional".
  • Trump Calls Senator Corker 'Liddle Bob' on Twitter

    Trump Calls Senator Corker 'Liddle Bob' on Twitter

    Trump's criticism of the Tennessee Republican drew a response in which Corker referred to the White House as an "adult day care". Corker to still support the budget measure next week because he already voted for it in committee, but other advisers to Mr.
    Snapchat will now let you book an Uber and read TripAdvisor reviews

    Snapchat will now let you book an Uber and read TripAdvisor reviews

    Context Cards are available in the UK, US, Canada, Australia and New Zealand for Snapchatters on iOS and Android from today. For launch, context cards will be available in the U.S., U.K., Canada, Australia, and New Zealand on both Android and iOS.
    Sensex, Nifty Inch Higher In Early Trade

    Sensex, Nifty Inch Higher In Early Trade

    Caution prevailed as earnings season for the September quarter kicks off this week, traders said. Domestic institutional investors (DIIs) net picked up shares worth Rs 55.42 crore yesterday.
  • Honda among auto  companies affected by Kobe Steel scandal

    Honda among auto companies affected by Kobe Steel scandal

    According to Japan Times , Kobe Steel said data was falsified to make the metal look as if it met quality standards. Suzuki Motor Corp. and Mitsubishi Motors Corp. all said they are checking whether their vehicles are affected.
    Liverpool's Sadio Mane facing six weeks out with hamstring injury

    Liverpool's Sadio Mane facing six weeks out with hamstring injury

    The Premier League giants have confirmed that as such the former Southampton winger is looking at up to six weeks out of action. Mane has enjoyed a blistering start to the season and has established himself as a talismanic figure for Jurgen Klopp's side.

    EPS Forecast Revision Trends: Rice Midstream Partners LP (RMP)

    Enable Midstream Partners, LP C recently declared a dividend for shareholders that was paid on Tuesday August 29th, 2017. Tocqueville Asset Management L.P. boosted its position in Magellan Midstream Partners, L.P.by 3.4% in the third quarter.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.