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

Economic Logic of the Silent and the Shy Voter

 

In politics and elections, there is often a talk about the presence of a silent voter or a shy voter. There is a belief that these voters generally remain silent about their preferences, do not voice any opinion on the same and cast their votes silently for their candidate. These silent votes if large in number can affect the forecasts of the pollsters. This is because of the silent or the shy voter refusing to participate or reveal their choice to the pollsters. Very few pollsters might be in a position to capture their choices.

 

It is usually believed that these voters belong to the subaltern classes or castes or those groups who are usually outside the power circles. They fear reprisals if their other caste or class groups learn about their choices. It is a different matter that an idea could be obtained on their voting preferences post the election results but that is another story. In India, it is usually believed that the voters of parties such as BSP do not reveal their choices. The BSP voter is typically a Dalit in Uttar Pradesh and given their power battles, they are usually afraid to reveal their choice lest they face a reprisal attack. Yet, contrary to perception, it is just not the voters of the vulnerable sections that are prone to hide their preferences but also the voters of the affluent sections too. This is because of social desirability bias or seeking to appear woke in public utterances.

 

 For long, even the typical BJP voter was usually silent. It was perhaps not easy to express a pro-Hindu preference in India where narrative was set by woke constituency. It was something cool to appear that one is pro-diversity, one accepts the deracinated Hindu thoughts, and one supports the alternative line of thinking on grounds of allowing dissent among others. While LK Advani for the first time made it possible to appear Hindu without being apologetic, it was the social media that made possible for the Hindu right to emerge on a certain scale in the Indian cultural and social thought milieu. Modi’s public appearance of being unapologetic Hindu has made it possible for the Hindu conservative voter to be vocal with their preferences. The fear of being castigated as narrow bigot by the left liberal ecosystem had made the Hindu conservative advocates go silent.

 

The concept of a silent vote assumes interest in the approaching US elections. President Trump has a constituency of white voters who are often accused of being racist and supremacist. History does offer sufficient evidence but modern compulsions make them hide their preferences. In the current debate in US, it seems that anything supportive of whites and in particular the white male would be deemed offensive in public. It is perhaps cool to talk about the white excesses on the coloured population and further criticise the whites. The white population indulging in self-flagellation would appear to be strategy that seems to work.

 

In terms of game theory, the dominant strategy for the whites is precisely to be appear as a silent voter. If the whites express their true preference, there is a significant risk of them being treated as a sort of social outcasts. Moreover, there would be attacks on them on social media and other online forums for not defending the so-called democratic rights of the others. The rise of Antifa among others who while least interested in empowering the under-privileged communities want to leech on them to secure power makes  the whites more vulnerable to express their opinion. In economics, there is a preference gap as measured by the distance between the stated preference and the revealed preference. While the stated preference could be towards appeasing and appearing woke, the revealed preference might be completely to the contrary. This was often true with the black and the other communities who faced backlash from the whites. Yet the milieu in the US seems to have changed. In 2016 too, many whites too remained silent and this constituency saw Trump sail through in those swing states.

 

As US approaches the polls, the white voter and their preferences would determine the fortunes of President Trump and his challenger ex-VP Joe Biden. The polls are perhaps not capturing that in some sense. Though the lead currently for Biden is around 7%, the past record of 2016 indicates a possibility of surprises. Aside of US election dynamics, it would be useful to theorise the logic of the silent voter. It would be instructive to decode their logic in remaining silent. There must be a sound reason for them to have a variance in their stated preference and revealed preference. It boils down to the concept of cost-benefit analysis. Each individual would basically think in terms of the marginal costs and the marginal benefits. The marginal costs of expressing their true opinion could be high. There might be ostracization, or at worse physical attacks. Even at best, people might tend to look them down. There could be threat to their careers as some of them have found out. The left liberals across the world would not mind destroying the careers and lives of their opponents. Some evidence is available in the context of India. Therefore, it would be rather prudent to adopt discretion as better part of valour. Yet, in the ballot boxes, there would be no such constraints and thus relatively speaking able to exercise their true choices. The marginal benefits on the other hand of offering your true views in public are relatively small. The benefits of remaining silent are quite higher. There could be quite a bit of praise and perhaps some upward mobility by tending to appear woke. The chances of peer pressure pulling one down would be relatively less. For some entrepreneurs it might be a signal to their peer constituency of appearing woke, catering to justice of downtrodden and profit seeking greedy vultures as capitalists are often projected to be. There might be professionals who might be subjected to blackmail from the liberal system for their views that stand contrast to the leftist world view. When taken holistically, it would obviously be a dominant strategy for the right wing constituency to appear woke while in practice they might be in contrast to the same. This applies in electoral politics too and thus the rationale for the silent or the shy voter.

 

 

 

 

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