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The Contribution of Thaler to Behavioural Economics

Author

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  • Gábor Neszveda

    (Corvinus University of Budapest)

Abstract

Richard Thaler was awarded the Nobel Memorial Prize in Economic Sciences in 2017 for his contribution to behavioural economics. The main purpose of behavioural economics is to build a bridge between economic thinking and the results of psychological research. Below, I present the fields where the work of Thaler stands out the most, such as limited rationality, lack of self-control and social preference. In addition, his findings also laid the foundations for behavioural finance. His unwavering, successful and high-standard research over more than forty years has laid the foundations for a number of new research directions, not only in sciences. The elaboration of the theory of libertarian paternalism, among others, is also associated with his name, which has substantially shaped many decision-makers and regulations over the past decade.

Suggested Citation

  • Gábor Neszveda, 2018. "The Contribution of Thaler to Behavioural Economics," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 17(1), pages 153-167.
    • Handle: RePEc:mnb:finrev:v:17:y:2018:i:1:p:153-167
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    References listed on IDEAS

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    Cited by:

    1. Zoltan Hermann & Hedvig Horvath & Attila Lindner, 2022. "Answering Causal Questions Using Observational Data - Achievements of the 2021 Nobel Laureates in Economics," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 21(1), pages 141-163.
    2. Balazs Vilagi, 2023. "The Reasons Behind Banking Crises and their Real Economy Impact - Achievements of the 2022 Nobel Laureates in Economics," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 22(1), pages 126-142.
    3. Barnabas Timar, 2021. "How Does the Market Price Responsible and Sustainable Investments?," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 20(2), pages 117-147.

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    More about this item

    Keywords

    behavioural economics; behavioural finance; limited rationality; social preference; lack of self-control; Nobel Memorial Prize;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G40 - Financial Economics - - Behavioral Finance - - - General

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