Richard H. Thaler

Richard H. Thaler is an American economist and behavioral economist. He is the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business. Thaler's research focuses on the intersection of psychology and economics, specifically behavioral finance and decision-making. He is best known for his work on "mental accounting," in which individuals make financial decisions based on how they mentally categorize and label money rather than on rational economic principles.

Richard H. Thaler is a past president of the American Economic Association (AEA). He served as the President of the AEA for the 2018-2019 term. The American Economic Association is a professional association of economists in the United States. It is the most significant economic association in the world, with more than 20,000 members. The AEA publishes four academic journals, including the American Economic Review, and holds an annual meeting in January. The organization aims to promote economic research and education and provide a forum for exchanging ideas among economists. Past presidents of the AEA include notable economists such as Paul Samuelson, Milton Friedman, and Joseph Stiglitz.

Richard H. Thaler was awarded the 2017 Nobel Memorial Prize in Economic Sciences for his contributions to the field of behavioral economics. The Nobel Prize in Economic Sciences, officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is an award for outstanding contributions to economics. It was established in 1968 and is one of the five Nobel Prizes established by the will of Alfred Nobel.

Thaler's work on behavioral economics, precisely the concept of "nudge theory," has helped to shift the focus of economics from the traditional rational-actor model to one that recognizes the real-world complexity of human behavior. The "nudge theory" describes how small, subtle environmental changes can positively influence behavior without restricting freedom of choice. Thaler's work in this area has significantly impacted health, savings, and pension policy-making. In addition, it has been influential in developing "behavioral public policy."