OCTOBER 10, 2017
THE INDEPENDENT STUDENT NEWSPAPER OF THE UNIVERSITY OF CHICAGO SINCE 1892
VOL. 129, ISSUE 5
Economics Nobel for Thaler
BY DEEPTI SAILAPPAN NEWS EDITOR
Booth Professor Rewarded for His Study of Irrationality DAKSH CHAUHAN & ANNE NAZZARO NEWS REPORTER & ASSOCIATE NEWS EDITOR
Patrick Yeung
Richard Thaler shakes hands with Booth Dean Madhav Rajan.
Richard Thaler was awarded the 2017 Sveriges Riksbank Prize in Economic Sciences on Monday for his work in behavioral economics. The Royal Swedish Academy (RSA), which awards the prizes, wrote in their official statement that his contributions “built bridges between the economic and psychological analyses” and brought behavioral economics into mainstream academia. Thaler is the 90th Nobel Laureate to be affiliated with the University of Chicago. The Nobel Memorial Prize in Economics, established in 1968 by the Swedish National Bank, is regarded as the most prestigious award in economics. Thaler is the author of the best-selling book Nudge, co-written with Harvard Law School professor Cass Sunstein, and Misbehaving: The Making of Behavioral Eco-
NEWS REPORTER
The hosts of the liberal politics podcast Pod Save America spoke at a student-moderated Institute of Politics (IOP) event at International House on Monday. Former Obama administration staffers Jon Favreau, Tommy Vietor, Dan Pfeiffer, and Jon Lovett addressed the responsibilities of progressive media outlets, recent incendiary White House rhetoric, and freedom of speech on college campuses. Third-year Gate editor Dylan Wells moderated the panel discussion, which later transitioned into an audience Q&A.
Some of the questions concerned disagreements and factions within the Democratic Party. “The way that Trump can win the reelection is for us to have divisions in the left,” Lovett said. “Politics, at the end of the day, are about persuading enough people to form a majority to get good things done and to get policies passed.” “What’s not a good argument is ‘One side needs to just shut up and deal with it,’” Pfeiffer added. The four speakers addressed the question of whether their sometimes derisive commentary Continued on page 3
a pioneer in his field. “[Thaler] studies the implications of relaxing the standard assumption of a self-interested, rational economic agent, instead entertaining the possibility that sometimes, some people actually choose to behave as human beings,” Madhav Rajan, Dean of the Booth School of Business, said in a press conference for Thaler at Booth on Monday morning. After the fashion of his research, Thaler told reporters that he will spend the 9-million-kronor prize, or $1.1 million, as “irrationally as possible.” “Anytime that I spend any money that’s really fun, I’m going to say, ‘That came from the Nobel Prize.’” At the conference, Thaler was joined onstage by University President Robert J. Zimmer, Provost Daniel Diermeier, and Rajan. In an introductory speech, Rajan praised Thaler’s work. “Dick Continued on page 2
Community Leader Argues for CBA
Podcast Hosts Discuss Politics and the Media JASON LALLJEE
nomics, which the Financial Times recognized as the most influential book on economics in 2015. He is a member of the American Academy of Arts and Sciences and has taught at the University of Rochester, Cornell University, the Sloan School of Management at MIT, and the Center for Advanced Behavioral Study at Stanford. Thaler also had a cameo in the 2015 Oscar-winning film The Big Short alongside actress and singer Selena Gomez. The field of behavioral economics is relatively new. It aims to study the effects that psychological and social factors have on the economic decisions of individuals and institutions. Thaler’s work in behavioral economics diverges from the tenet in mainstream economics that people act rationally. Instead, he espouses the belief that people behave in irrational but consistent ways that can be modeled and applied to other fields. He is widely recognized as
ALEX WARD ASSOCIATE NEWS EDITOR
Speaking at the University on Monday, the head of the Kenwood Oakland Community Organization (KOCO) said that without a community benefits agreement (CBA) for the Obama Presidential Center, current residents will inevitably be displaced. KOCO Executive Director Jawanza Malone spoke alongside Virginia Parks, a professor at the University of California, Irvine who specializes in urban planning, labor issues, and the history of CBAs nationwide. Both speakers were hosted by student group UChicago for a CBA (formerly the Prayer and Action Collective) at a dinner talk
The Art of the Novel With Augustus Rose
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Virginia Parks and Jawanza Malone at the teach-in. in Reynolds Club. UChicago for a CBA is part of a broader coalition of community organizations pushing for a CBA. “When you look at large-scale
developments across the country where you have not had [CBAs], including presidential libraries, people got displaced,” Malone Continued on page 3
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Page 5 The creative writing lecturer and first-time novelist discussed his process at 57th Street Books Thursday.
Football Beats Lawrence 28 –8 Photo Essay: Hyde Park Book Fair Online
Page 8 Running back Chandler Carrol scored four touch-downs.
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