Richard Thaler: A unique Nobel Laureate

In the context of 1986, two young economists were sitting together at a conference of economists at a quiet, conference. One said to another,

"Have you heard of the new Journal of the American Economic Association?"

- "Which journal?"

- "Journal of Economic Perspectives. This journal will primarily prefer economics articles in a few simple languages. These writings will not be written just to the general public. But economics students are the main readers of the journal. "

- "Wow, that's great! If I want to here, I can write columns about the different inconsistencies of regular human behavior! "

The first of the above conversations is Hal Varian, the second is Richard Thaler. Varian is currently Google's Chief Economist and Emeritus Professor of UC Barrack. He has read many books in the world and has been translated into 22 languages.

Richard Thaler is the Nobel Laureate Economist in Economics in 2017 Thaler is currently working as an economist at the University of Chicago's Booth School of Business. The main theme of today's writing is his life and his work.

Now we come back to the column. Later, Richard Thaler started writing in regular journal titled Anomaly. Thaler's main objective of this column was to illustrate that the fundamental basis of the economy was set on a mistake. All theories of the economy are at the root of the fact that people logically decide.

Thaler wanted to show that people actually do not actually take a reasonable decision. There are limitations in their logical thinking. After four months of this, after three months, he wrote about different inconsistencies.

Thaler knew that the only way to prove the inconsistency in making people's decision is to create a long list of inconsistencies. Because, it is possible to cancel one or two contradictions with very different interpretations.

But when it is possible to show many signs of dissonance, then it will be difficult to put an explanation for them. In that case, inconsistency will develop as an acceptable concept. As a result, it will also prove that people do not always logically decide.

For this reason, Thaler Ek-Ekte wrote 14 different columns with 14 different inconsistencies and gradually changed the concept of some people. Thaler believes that the 1987 US stock market collapse helped to change the attitude of the people.

There was a long list of such bizarre deeds on Thaler's blackboard

Thaler started working long ago due to lack of inconsistency. In the '80s, when he started working as an assistant professor at Cornell University, since then, he kept a list of strange people.

An example of such a bizarre job is that people know tips on the waiter even after learning about why people can never return to a restaurant. In the theory of economics, people always want to increase their profits. Therefore, there is no reason to give people tips and tips.

The restaurant waiter will be happy with tips, and will be well served later. But when a buyer knows that he will not go back, there is no reason to give tips. Still, many people gave tips in such situations, seeing Thalay.

There was a long list of such bizarre deeds on Thaler's blackboard. This list was the first step in Thaler's Behavioral Economics work.

Behavioral Economics is basically a matter of generating psychology with economics. Thaler worked on how various theories of psychology could work in the decision making process. In 2010, he won the Nobel for his outstanding contributions.

Thaler has shown that there is a limit to human logic. He also showed that there is a lack of man's self-control. He has said to consider these issues in the preparation of various policies of the economy. He said about the use of "Nudge" in this case.

"Nudge" is a method whereby a small incentive is given to the person to make the right decision. As a result, the person is inspired to make the right decision. No one is forced to do this. Thaler has shown that the effectiveness of this approach is, rather than giving incentive without compromising, the tendency of people to make the right decision increases.

Thaler has been researching these issues for nearly four decades. His notable two books are: Nudge: Improving Decisions on Health, Wealth, and Happiness and Misbehaving: The Making of Behavioral Economics. In order to use his theory, there are separate departments in the United States and the United Kingdom. He himself has worked with the UK government for five years in this regard.

Richard Thaler completely changed the economy of the economy and the results of his work already existed. He himself is not beyond the limitations of the logic given by him, it seems to be proven that after declaring the Nobel Prize, in the initial reaction he said that the Nobel prize money will be unjustified as far as possible!

What is the change in the future Behavioral Economics talks, it is a big question! Without any doubt, Richard Thaler will play a leading role in making those changes.