Much before United States economist Richard Thaler won Nobel prize for economics, the Narendra Modi government had put his famous theory in practice by dedicating a separate unit to it. Thaler popularised the idea of "nudge economics", which emphasises subtly guiding humans toward beneficial behaviours without forcing them to comply. 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.
"By exploring the consequences of limited rationality, social preferences, and lack of self-control", Thaler "has shown how these human traits systematically affect individual decisions as well as market outcomes", the Swedish Academy said.
UR Assistant Professor of Economics Asen Kochov described Thaler's foundational work in behavioral economics as "one of the main developments in economics in the last 50 years".
Thaler co-authored a book with Harvard's Cass R. Sunstein called "Nudge: Improving Decisions about Health, Wealth, and Happiness".More news: Brazil Come From Behind To Beat Spain
Thaler will receive a 9 million kroner ($1.1 million) cash prize for his work.
"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"'.
Thaler was born 1945 in East Orange, New Jersey and received his Ph.D.in 1974 from the University of Rochester, New York. "I no longer will have to call my colleague Eugene Fama "Professor Fama" on the golf course", he joked, referring to his University of Chicago colleague who won the 2013 Nobel Economics Prize.
Thaler made a cameo appearance in the 2015 movie "The Big Short" about the credit and housing bubble collapse that led to the 2008 global financial crisis.