Economic Sciences Prize 2017 — Behavioural economics
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What this document is
This page summarises the scientific-background document for the 2017 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, awarded to Richard H. Thaler of the University of Chicago for his contributions to behavioural economics.
Published by the Royal Swedish Academy of Sciences, the background paper explains Thaler’s research programme in more depth than the short prize citation, setting out how psychological insight has been incorporated into economic analysis.
What it covers
Thaler’s work bridges psychology and economics. Themes commonly associated with the prize include:
- Mental accounting: how people categorise and treat money differently depending on its source or intended use;
- Limited rationality: the ways real decisions depart from the fully rational agent of classical theory;
- Self-control: the tension between short-term impulses and long-term plans;
- Nudges: designing the presentation of choices to help people make better decisions while preserving freedom of choice.
Together, these ideas show that predictable human biases have measurable consequences for markets, savings and public policy.
Why it matters
Behavioural economics has reshaped how governments, regulators and businesses think about decision-making — from pension enrolment to consumer protection. The field’s influence on policy design has been substantial, and the 2017 prize recognised its maturation into mainstream economics.
Because the prize background is widely cited in academic and policy discussion, external sites link to this file. We host a neutral summary to preserve those references, and point readers to the official Nobel materials for the full text.
Frequently asked questions
Who won the 2017 Economic Sciences Prize?
Richard H. Thaler, of the University of Chicago, received the 2017 prize for his contributions to behavioural economics — the study of how real, psychologically influenced human behaviour affects economic decisions.
What ideas is Thaler known for?
His work is associated with concepts such as mental accounting, limited rationality, the endowment effect, problems of self-control, and the idea of "nudges" — small changes to how choices are presented that can steer decisions without restricting freedom.
Is this the same as the other Nobel Prizes?
The economics prize is formally the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, established later than the original prizes and funded by Sweden’s central bank. It is awarded by the Royal Swedish Academy of Sciences.
Where can I read the original?
The official materials are published on the Nobel Prize website. This page is a reference summary only.