🔹Richard Thaler’s Nobel Prize🔹

🔹Richard Thaler’s Nobel Prize🔹

My view of the Nobel Prize in economics is much like Time magazine’s view of its “Person of the Year.” It is awarded to the economist who “for better or for worse… has done the most to influence” the course of economic thinking – at least in certain respects. It also, like Time magazine, operates under the constraint that an award must be given every year.

The philosopher Karl Popper used to say that we learn much from our mistakes, even more than from our successes. The same is true about a profession. The stir created by behavioral economics has been good for economics and Richard Thaler has been an important part of that. It has awakened economics from a self-satisfied slumber. But if the awakened economics accepts the truisms and biases of behavioral economics then that would be bad for economics. It would be yet another self-satisfied slumber. The behavioral moment is an opportunity to re-evaluate standard economics but also to correct the errors and direction of behavioral economics, and then move on.

https://thinkmarkets.wordpress.com/2017/10/09/richard-thalers-nobel-prize/