How Modi put Nobel Prize victor Richard Thaler's 'nudge theory' to use

Gladys Abbott
October 11, 2017

It was not part of the original group of awards set out in dynamite tycoon Nobel's 1895 will. Mr. Thaler, who has made a career of studying irrational and temptation-driven actions among economic actors and won the Nobel for such contributions to behavioral economics, expressed misgivings about the low volatility and continued optimism among investors.

On November 8, PM Modi shocked the country when he announced that the government was banning Rs 500 and Rs 1000 notes in a bid to promote cashless economy and control corruption.

Richard Thaler is a University of Chicago professor whose work influenced the Obama administration.

The 72-year-old takes home a nine million kronor (944,000 euros, $1.1 million) prize sum.

The economics prize, officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968.

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An Illinois professor won the Nobel prize in economics Monday for his groundbreaking research into why people make bad money decisions.

Thaler “is a pioneer in behavioral economics, a research field in which insights from psychological research are applied to economic decision making, ” a background paper from the academy said. Of 79 laureates so far, more than a third have been affiliated with the university's school of economics.

Influential in academic circles, the movie-going public may have noticed Thaler make a brief cameo in the 2015 film "The Big Short", explaining the so-called "hot-hand fallacy" where past success is expected to also warrant success in the future, with pop star Selena Gomez.

Since it was first awarded in 1969, Americans have dominated the economics prize, with 56 of the 79 laureates holding United States citizenship, including those who have dual nationalities.

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