The US academic Richard Thaler won the Nobel prize in economics on Monday for his pioneering work in this field. Unlike the field of classical economics, in which decision-making is entirely based on cold-headed logic, behavioural economics allows for irrational behaviour and attempts to understand why this may be the case. Brexit is one example of how behavioural economics can be useful. Tax remindersThe Whitehall nudge unit helped to rewrite tax reminder letters using principles of behavioural economics, which it said helped to bring forward more than £200m for the government in one year. E-cigarettesThe behavioural insights team worked with Department of Health on the regulatory framework for e-cigarettes, viewing the devices as potentially beneficial in helping smokers to quit.

Source: The Guardian October 09, 2017 13:50 UTC