Thaler is the 90th scholar at the university to win a $1.1 million Nobel Prize and the 29th to win the prize in economics.
Professor Thaler is considered one of the founding fathers of behavioural economics, a field that shows that far from being the rational decision-makers described in economic theory, people often make decisions that don't serve their best interests.
In his award citation, the Academy said his research explored the consequences of limited rationality, social preferences, and lack of self-control.
Speaking by phone at a news conference after he was announced as this year's victor, Thaler said the most significant impact of his work has been creating a "recognition that economic agents are human". He is the 29th economics laureate to be the associated with the University of Chicago, the school said.
So it was only usual that Richard Thaler used an oft repeated word in his research when asked how he will use his prize money.
Thaler, 72, of the University of Chicago, told the press that the most important value of his work was the understanding that "in order to do good economics, you have to keep in mind that people are human". He is one of the forerunners of "behavioral economics", which is one of the most energetic sub fields in the economics regulations.More news: Taylor leads Badgers to victory in Nebraska
"There's also a nudging unit for the United Kingdom government, there's one for the Australian government, it even affects the Swedish government when they think about these things"'.
And he even made a cameo alongside Selena Gomez in the 2015 movie "The Big Short".
Richard Thaler has been awarded the Nobel Memorial Prize in Economic Sciences 2017 for his contributions to the field of behavioral economics.
The award, which was established in 1968, wasn't among the original Nobel Prizes established by Alfred Nobel's 1895 will and first awarded in 1901.
These tweets came from the Twitter handle '@R_Thaler', which is not officially verified but was tagged by the official feed of the Nobel Prize.