Study On The Behavior Economic Theories Of Richard H.Thaler

Richard H.Thaler is regarded as the "father of behavioral economics" and is generally considered a master of behavioral economics.Based on the development of the predecessors' theories,his behavioral economic theories have a certain theoretical system.This article divides Richard H.Thaler's grand economic theories into two main parts.In the first place,the article discusses about the behavioral economics theory of Thaler;in the second place,the article illustrates the behavioral finance theory of Thaler.Firstly,this article studies the mental accounting theory,endowment utility theory,planner-executor model and limited self-control theory,nudging theory and social preference and fairness theory.Among them,the most important is the nudging theory which aims to solve how economic policies based on behavioral economics can help economic authorities to make more rational decisions.In the second part,this thesis also studies the behavioral finance theories of Thaler,which mainly includes the irrationality of investors and the volatility theory of capital market.Finally,by comparing the behavioral economics theory of Thaler and Kahneman et al.,this article summarizes the innovation and insufficiency of Thaler's theory and discusses the realistic enlightenment value of Thaler's behavioral economics and financial theories.Chapter 1:This chapter illustrates the research background,the significance of the research,the literature review of Richard H.Thaler's economic ideas,as well as the basic content and innovation of this research.Chapter 2:This chapter mainly discusses the biography of Richard H.Thaler and his major academic achievements.Richard H.Thaler's career in behavioral economics began at Stanford University and he currently teaches at the University of Chicago.His major theory contributions include mental accounting theory and the further illustration of endowment effect.Chapter 3:This chapter introduces Richard H.Thaler's major behavioral economic ideas.It mainly includes the introduction of the theory of limited rationality and endowment effect,the elaboration of his mental accounting theory,the planner-executor model and the theory of limited self-control.These ideas are the basis of the establishment of Richard Thaler's main behavioral economics.Through the study of these ideas,a clear understanding of behavioral economics and Richard H,Thaler's research methodology can be obtained.Chapter 4:This chapter mainly sorts out and studies Richard H.Thaler's behavioral financial thoughts including his conclusions on investor behavior through psychological experiments and empirical analysis.In the field of behavioral finance,Richard H.Thaler proposes that participants in financial markets are often irrational and phenomenon that violates the law of one price regularly occurred in the market.The volatility of investor sentiment drives the stock market's continuous fluctuations and results in the deviation of asset pricing.Chapter 5:This chapter is a comparative study of the theoretical evaluation and practical enlightenment of Richard H.Thaler's behavioral economics.Through a comparative study of Richard H.Thaler's behavioral economic theory and Kahneman's behavioral economics theory,it provides a more in-depth perspective to discover the contribution of Richard H.Thaler to the development of behavioral economics.The main innovations of this article include three aspects:Firstly,this paper systematically sorts out the economic ideas of Thaler's behavior theories which to a certain extent contributes to the study of Thaler's economic theories.Secondly,this article includes the study of behavioral financial theory of Thaler which is helpful to understand the application of behavioral economics in financial markets.Thirdly this article also includes a comparative study of both the Thaler's and Kahneman's behavioral economic theory which is innovative.