American Professor Richard Thaler gets Nobel for 'understanding psychology of economics'

American economist Richard H Thaler has been awarded the Nobel Prize in Economic Sciences for 2017.

Thaler, who is a professor of Behavioural Sciences and Economics at the University of Chicago, has been awarded the Nobel for his contributions in the field of economic sciences. 

Swedish Academy of Sciences secretary Goeran Hansson said, “The prize was awarded for understanding the psychology of economics.” 

“His empirical findings and theoretical insights have been instrumental in creating the new and rapidly expanding field of behavioural economics, which has had a profound impact on many areas of economic research and policy," the Nobel jury said in a statement.

“His theory explains how people simplify financial decision-making by creating separate accounts in their minds, focusing on the narrow impact of each individual decision rather than its overall effect," the Royal Swedish Academy of Sciences said.