Nobel laureate Richard Thaler is the new senior advisor on pensions and behavioral economics at Pimco, the US giant that manages bond investments.
Thaler, a world-renowned economist, Charles R. Walgreen Chair in Economics and Behavioral Sciences Professor at the University of Chicago Booth School of Business, received the 2017 Nobel Prize in Economics for his work on understanding psychology economic. Thaler is one of the world's leading scholars of behavioral economics, the science that develops alternative behavioral models to that of standard economic theory, through concepts drawn from psychology. He is also a co-founder and partner at Fuller & Thaler Asset Management, where behavioral finance principles are used to manage US small-cap equity portfolios.
“Professor Thaler's contribution – reads the company note – will allow Pimco to better understand human behavior and how it affects decision-making processes, for example by investigating the criteria that lead individuals to make certain spending decisions and savings in retirement. Pimco intends to use this information to create investment solutions that best meet the needs of a broad range of clients, both in relation to the assets to be accumulated in view of retirement, and in terms of strategies aimed at using reasoned and aware of these activities in order to address the inevitable uncertainties that retirees are faced with".
