Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

The Consequences of Woke Individual Liberalism


The piece Diminishing Returns of Woke highlighted the counter reactions emerging towards imposition of wake culture. Political backlash is pretty visible, the backlash is spreading down to lower echelons of the society. Yet instances are being reported of woke liberals engaged in a witch hunt on the deviants from the alleged woke line. The case of an Ola driver to doctor in Kerala to an earlier instance of chef in the Gulf are pointers towards ‘micro-Dreyfuses’.

An unpopular view of the same, however unfortunate it might be, is there will be victims of this battle. Foot-soldiers often pay the price and perhaps of higher magnitude in relative terms. Yet the cost of witch hunt would be significantly higher for woke liberals. To a woke liberal, long run success would be of conversion of ordinary human towards their side and if not at least not push him or her to the other side. This collective interest is at odds with the individual self-interest of woke liberal. He or she wants to climb the pyramid of the elite societal strata and would prefer to engage in actions that propel them towards the top. In the piece ‘Why Elitism Flourishes’ it was discussed the greasy nature of the pole that one uses to traverse the journey toward elitism. For all said and done, the person who builds the story of cab driver would in all probability planned the fiction to score brownie points, get more followers on Twitter, Linkedin, Facebook etc.  get a contract or two from the liberal mouthpieces and in a short while emerge as some spokesman of the same. Further any individual on this path will look to convey the signal of their credibility and willingness to traverse the path of woke liberalism. They thrive in seeking low hanging fruits and what better than cab=driver story with more than its share of its masala added.

On the contrary, this individual self-centred action creates a ripple effect on the opposite side. It it not just the driver who is the victim. His victimization is bound to echo through his network of family and friend, both professional and social.  Their anger would intensify and drive them away from the liberal camp permanently. Even though there might be a critic or two of the establishment, sympathetic to ‘liberal’ causes, that would be set aside and create a switch to nationalist camp. So the collective objective of the liberal would be defeated by individual actions or aggregate of these independent individual actions. This does not have to happen overnight, but a process that will gather critical mass with passage of time. The diffusion of messengers like Whatsapp will amplify the tone against liberals further even though the driver and his network would perhaps have hardly about this term. These cases in the presence of social media would diffuse fast across the country and kindle an antagonism to anything woke. So the net outcome would be the individual self-centred act towards creating a path of personal progress will conflict with the collective interest of mobilization against their opponents.

Firms might take some time readapting to new order. They might relish woke on a simple assumption of many customers are sympathetic to woke and they would lose brand image for acting anything against woke.  The moment they realise the anti-woke is elastic with respect to brand catering to woke will change the dynamics. To a firm, the costs of being anti-woke or politically incorrect is higher than the relative benefits. The shift will have a time lag.
Meanwhile, for every scalp of an ordinary human in catering to an individual fetish of elite pretensions, the costs for liberals are bound to manifest geometric multiplier effect in socio-political spheres going forward.



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