Economists used to assume that people were, overall, rational. They may make mistakes now and then, but, if reasonably informed, they do the right thing. Then came Richard Thaler, who, in October, was awarded the Nobel Prize in Economics.
While Thaler was teaching at the University of Rochester, he had a side gig. Not a lot of people knew about it or took it seriously. He would catalog ways people behaved irrationally. And Thaler thought, there must be a way to make sense of this behavior, to understand it and to predict it. This list led him to psychologists Daniel Kahneman and Amos Tversky.
Read the whole story: NPR