The 2017 Nobel prize in economics, formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to American academic Richard Thaler of the University of Chicago for his contributions to behavioural economics.
Dr. Thaler has incorporated psychologically realistic assumptions into analyses of economic decision-making, a media release by Royal Swedish Academy of Sciences said.
"By exploring the consequences of limited rationality, social preferences, and lack of self-control, he has shown how these human traits systematically affect individual decisions as well as market outcomes."
There have been 78 previous winners of the cash prize and medal, which has become a significant honour for economists since it was established in 1968. The winner will walk away with 9-million-kronor ($1.1-million) prize. Last year, Oliver Hart and Bengt Holmström shared the prize for their contributions to contract theory. Indian economist Amartya Sen won the Nobel in 1998 for his contributions to welfare economics.