Pioneer of behavioural economics is best known for ‘nudge’ theory, which has influenced politicians and policymakersOne of the founding fathers of “nudge” theory, which has helped boost British tax receipts and encouraged smokers to become vapers, has been awarded the 2017 Nobel prize for economics. What is behavioural economics? Nudging stems from the field of behavioural economics, examining how gut instincts can often overrule rational choices, in which Thaler is regarded as a pioneer. Unlike the field of classical economics – whereby decision-making is based on cold-headed logic – behavioural economics allows for irrational actions and attempts to understand why this might be the case. Women are significantly underrepresented in the economics prize compared with some of the other Nobel awards, such as those given for peace or literature.

Source: The Guardian October 09, 2017 09:52 UTC