2017 Nobel Prize winner in Economics Richard Thaler has had a long body of work contributing to our understanding of Economics and business and consumer decision making. Bloomberg selected the five works that – according to Bloomberg — define Thaler’s contributions, click here.
Nazarbayev University Graduate School of Business Professor Thierry post is the lead-author of one of Thaler’s publications selected by Bloomberg to define great Nobel Prize quality work.
The Graduate School of Business is not new in joint work or praise from Nobel Prize recipients. Previously, Nazarbayev University Graduate School of Business Professor Marek Jochec’s work was mentioned in Robert Shiller’s 2013 Nobel Prize in Economics acceptance speech, summarizing several decades of scholarly research in behavioral finance, citing influential break‐through works. One of the works of scholarly research mentioned by Shiller was Marek Jochec’s work.
Prof. Thierry was the first author of a 2008 American Economic Review publication where Nobel Prize Winner Richard Thaler was the last author: Thierry Post, Van den Assem, Martijn J., Baltussen, Guido and Thaler, Richard H. (2008), “Deal or No Deal? Decision Making Under Risk in a Large-Payoff Game Show”, American Economic Review 98 (1), 38-71.
Professor Thaler’s theory of “mental accounting” (especially well-known by Marketing researchers from his 1985 Marketing Science article “Mental Accounting and Consumer Choice”) explained how people simplify financial decisions by focusing on the narrow impact of each decision rather than on its overall effect. He also showed how aversion to losses can explain why people value the same item more highly when they own it than when they do not, a phenomenon called the endowment effect.
Congratulations Dr. Thierry!