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 Unsurprising Logic of People's Padma


PM Narendra Modi government has transformed the shape and direction of Padma awards. A journey from what Harish Khare of the Hindu once described as the bent and beautiful to the ordinary India achievers seems to be here to stay. Achievers do not seek visibility but are guided by passion irrespective of the level they function. It should be unsurprising to see the winners from grassroots achievers, yet the elitist underpinnings of Lutyen’s patronage creates a sense of pleasant surprise glancing the list of Padma awardees in recent times. Beyond doubt, what Prof Subhash Sharma terms as capillary action, generates increasing returns of success is undisputed given the sheer population and diversity in India. What seems missing was the element of discovery and recognition of more and more Bharat as against India.

In the erstwhile years, bestowing Padma awards was a product of strength of lobbying. It seemed inevitable given the selection mechanism and the subsequent post award benefits. To the party in the power, Padma awards were obviously the means to distribute the rewards of patronage. This distribution of patronage came with a price- the price of supporting the government. More often than not, people in diverse fields with connections in the government were the favoured beneficiaries though rarely exceptions arose.   The awardees given their visibility the media both print and electronic would leverage to market the government downstream. Implied is the visibility of the agent to the government and subsequently to the people who matter.  Thus media personalities and experts constantly appearing in media and those in large cities like Delhi, Mumbai etc. had the highest probability to be conferred the Padma awards.  Visibility in the eyes of national public was equated to national service and achievement and thus bestowed the awards. In Gladwell phraseology, visibility was synonymised into those talented few who had the skill in them to be connectors, mavens and salespersons.

The fundamental technology and communicated structure favoured the approach. Fundamentally, the economics of things and economics of information work in different ways. In the former, the information, carried by things, is constrained to follow the linear physical value chain. Information thus constrained by physical mode of delivery is subject to the law of inverse relationship between richness and reach of information. The detailed application of the same in the context of political communication has been discussed here. Communicating customized, interactive large bandwidth information required dedicated channels of communication, the costs of which restricted their reach. Messages to larger audiences meant compromises in terms of the richness of information and holds true for companies, non-profit organization, social campaigns and political parties.  This pervasive trade-off shaped the nature of communication, collaboration and transaction both internal and external to the organization. Thus conspicuousness in the mass media, the product of this complex mechanism, was associated with accomplishment.

Attempts in building organization independent of state control or market demands, ended being either too feeble or localized to make decisive impact on the narrative. The hub and spoke technical model with unidirectional flow of information from the centre to the periphery meant presence in the hub mandatory for greater visibility and rewards. The hub and spoke model revolved around production economies, identical forms of communication to each consumer equipped with low cost unidirectional ubiquitous cheap recipient systems Therefore, the media became a convenient vehicle for patronage dispersion and construction of a network of connectors, mavens and salespersons. The perceived stickiness contributed substantially to the increasing returns.

Internet offers autonomy of choice for individual recipient of information and communication. It facilitates multiple versions of narratives to be communicated allowing the exercise the choice on consumption and production of information. There was bidirectional flow of information and communication and passivity shrunk with consumers too functioning as producers of information.  Internet redefines the role of individuals in shaping the narrative besides increasing their ability to move beyond the confines of private conversations to engagement with the rest of the fraternity. Conversation were liberated from the tyranny of geography.  Decentralized production of information, knowledge and culture is denouement of heterogeneous motivations in large number of consumer-producers. Web based platforms simplify the aggregation of the generated accounts.

With the traditional models of communication ceding the monopoly space, they increasingly began to lose the bargaining power. A natural corollary thus was discovery and recognition of individuals who made substantial contribution at their societal level. However they lacked visibility given the selective choices of the mass media sphere. These new connectors and mavens and salespersons are not nationally renowned but in their own way command respect within the local environs. They are recognized for their knowledge and service but the recognition due to the erstwhile structure of information ecosystem could never scale up.

One can take up some examples. Salumarada Timmakka or Tulasi Gowda. Not that they were unknown. They were known and celebrated within their region or locale for many years. Yet the scaling up was not possible because it was felt their contribution did not fit into the scheme of what was top down description of national achievement or contribution. When the government sidelines the top down definition of national contribution and achievement and redefines in the local context, numerous cases will spring up. There are many who have worked tirelessly without seeking recognition. Perhaps they within the work they have been performed have attained self-actualization. Self-actualization is not a theoretical formulation about celebrity achievement but finding passion inner peace and meaning within work without care for external recognition or rewards. To Salumarada Timmakka it perhaps came in planting trees despite the circumstances in which she took up the task. To Mohammad Sharif it was perhaps in giving dignity to the dead, again in response to personal tragedy, for Dr. Ravi Kannan in treating cancer patients in remote Barak Valley.  To Dr. Bhakti Yadav, it was in midwifery and obstetrics that gave her the self-actualization.  It is moot whether they desired recognition or not but national gratitude for those hundreds who altruistically make difference people’s lives at the local level that matters is requisite. Impact not scale matters.

These ordinary people are subconscious connectors and mavens and salespersons of recognition of achievements. It is just not one of them that is honored, but the message diffuses to the others in near and distant communities. There would be an increasing feeling of the government in Delhi recognizing the work, which sends the message of gratitude. For those untouched by these grassroots achievers, the very news of them being rewarded would be sense of satisfaction of genuine achievements and contributions being recognized. They are the ones who develop the stickiness of the message and give a context to the same. For many living in the distant peripheries of the country, it would be a symbol towards eliminating the tyranny of distance. There would be a feeling of proximity to national endeavor. One does not have to be Delhi or Mumbai or other metros to get noticed. It is not the elite that perpetuate the pyramid. It is not the visibility or PR associated with the work that matters but the actual work and the context of the work that matters. Appearance of national TV, perhaps due to being merely present and working in Delhi is no guarantee to be synonymized with achievement. The geography of work is not material just the work is suffice to be rewarded.

There obviously would be spill overs. It is evidently politically lucrative to go beyond Delhi and seek the achievers in the remote corners of the vast and complex nation.  Yet despite the political lucrativeness and thus rational for PM Modi to walk the talk, the real will lies in the ability to sideline the Lutyen’s elite. There would be a price to pay. The elitism flourishes for a reason as discussed here. For the Lutyen’s elite, the fact that somewhere someone in India is silently engaged in nation building with contribution perhaps greater than all of the Lutyen’s put together might be unpalatable. Yet the political will was necessary to break the Lutyen’s cabal of Padma Awards. The fact that it’s has been broken is a reason enough to celebrate the new era of People’s Padmas.





Comments

Popular posts from this blog

Decision Making as Output and Bounded Rationality

The Chicken-Egg Conundrum of Economics

A Note on Supply-Demand Dynamics