Economist Richard Thaler has won this year's Nobel Prize for Economics.
The scholar, who is a professor at the University of Chicago Booth, is one of the founding fathers behavioral economics.
Thaler will receive 9 million Swedish krona or £850,000 from the prize committee. "I will try to spend it as irrationally as possible!" the economist said.
During a press conference, the economic was asked what the most important aspect of his research is. He replied that it "is the recognition that economic agents are human and that economic models have to incorporate that".
The professor is the co-author of global bestseller “Nudge”, which is literature that examines, explores poor choices made by individuals.
The book spun a theory aptly coined the "nudge theory" which guides people towards making better life decisions.
According to the panel which voted on this category, Thaler's work contributed to an understanding of the psychology of economics.
Panelist Per Stroemberg of the Royal Swedish Academy of Sciences added that the American's work also explored the corelation between human psychology and economic decisions.
"Richard Thaler's findings have inspired many other researchers coming in his footsteps and it has paved the way for a new field in economics which we call behavioural economics," Stroemberg explained.
When was asked to address the absence of women Nobel prize winners, the panelists said they are concerned and are taking measures to improve the situation.
The committee said that it hopes that the shortfall concerning women will be nonsequitur within the next five to ten years.