What is behavioural economics?

After US academic Richard Thaler wins Nobel prize in economics for pioneering work, we take a closer look at his field

" Richard Thaler wins Nobel prize in economics

Behavioural economics incorporates the study of psychology into the analysis of the decision-making behind an economic outcome, such as the factors leading up to a consumer buying one product instead of another.

The US academic Richard Thaler won the Nobel prize in economics on Monday for his pioneering work in this field. The Royal Swedish Academy of Sciences, which awarded the 845,000 prize, praised Thaler for incorporating psychological assumptions into analyses of economic decision-making.