Why should students studying managerial economics be especially interested in Richard Thaler being awarded the Nobel...

Why should students studying managerial economics be especially interested in Richard Thaler being awarded the Nobel Prize in Economics in 2017?

Expert Solution

Managerial economics deals with the application of economic concepts for dealing and solving practical problems that arise in running a business. In other words, it deals with combining economic theory with managerial practices so that issues related to running a business can be resolved. Running a business involves dealing with individuals in the form of workers, traders, retailers, and policymakers.

It is in this context that behavioral economics becomes important for the students of managerial economics, as behavioral economics combines psychological theories related to human psychology, and cognitive and emotional factors with economic theory to predict the impact of the psychological factors on economic decision making. It also helps in understanding how such psychological factors affect variables like market price and factors of production.

Richard Thaler becomes important for the students of managerial economics because he won the Nobel Price in Economics in 2017 for his contribution to the field of behavioral economics.

Rahul Sunny answered 2 years ago

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why the Nobel Prize in Economics in 2017 was awarded to Richard Thaler, and (2) whether/why students studying managerial economics should be especially interested. ( In your own words please)

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