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

Elections- US and India- Two Takes

 

The US elections of 2020 seem to add a new chapter in their history. The way they seem to conduct elections is hardly an advertisement for the world’s most powerful democracy. Over the last nearly two hundred and fifty years, they have been conducting elections, yet the complaints of manipulation, fraud, extension of voting times, counting delays, and contested ballots do not seem to have gone away. It might be anyone’s game at the time of this writing but what the elections are manifesting is not per se democratic exercise but an outcome driven by the machinery of the state in question. Stealing an election of course in the US is not something unusual but each occasion, it traverse new distances. The memories of the 2000 battle fought in Supreme Court over Florida is still fresh in the mind. The 1960 victory of John F. Kennedy too is attributed to the manipulation that happened in Chicago.

 

The US elections of 2020 was not just an ordinary battle. It was essentially a battle between a tenuous coalition of left liberal anarchists, Democrat political establishment, the Big Tech and the Big Media against a guy who was an established creature but sought to turn against them. The villianization of Donald Trump was complete. There was literal hatred by the elite against him. In fact as the voting patterns suggest, contrary to the Republican Party’s traditional base of the elite it was the working class that stood behind Trump in this elections. He converted the party into a platform for the non-educated or less educated Whites often at the receiving end of the government economic policies. The outsourcing of manufacturing and services from US to overseas had affected them and they were the ones who stood behind Trump in his promise to bring manufacturing back to US.

 

To the establishment, Trump represented an epitome of the opposite. Trump contrary to a leader like Modi, was not the one who grew from the ranks. He was very much an establishment insider. His empire would not have received such an attention had it not been for the media backing and fawning. In fact, as many suggest, it was the establishment or at least a section of it who encouraged him to run for the elections. It was believed that Bill Clinton did not want an opponent who could be strong, something like Obama that haunted him. Hence he encouraged Trump to run for the Republican Party nomination. Incidentally Trump was a former Democrat. Yet as Trump outperformed in the Republican primaries using an anti-establishment platform, it sent unnerving signals to the entrenched. To Trump it was in his self-interest to adopt the platform. It served him propelling him to a victory often seen as a fluke in 2016. The entrenched having seen this betrayal did not want to ensure a repeat of the same. This meant the no holds barred contest for 2020.

 

The results no matter how they turn out, bring about the worst in the big tech and the big media. The media hyped the opinion polls indicating a massive lead to Biden and Trump being crushed at the game. As the results turn out, it is anything but true. While some states were believed to record double digit leads for Biden, the actual results seem to indicate Biden is trailing or leading very narrowly. In fact states like Florida or Texas which were supposed turn Blue have remained Red. The battle in Wisconsin is going to the wire while Trump manages to have leads in Pennsylvania and Michigan. Even Georgia which was supposed to flip blue has remained red or at least closely contested. The credibility of the pollsters post elections was hardly cared about. If there was something that has to be done to create a ‘mahaul’ as they call it in India, the media was more than happy. Any pro-Trump comment was sought to be suppressed. In fact, comments by President Trump himself were supressed by Twitter. The Big Tech believed it could shape up the election and demonstrate its power. To an extent it has done the same. If Biden wins the election, as still there is a good chance for, the Big Tech might come as a winner as does Big Media. Having tasted blood, they might now venture into different terrains not just within US but abroad as well.

 

In US, given the relative powers of the state in setting the election rules, there is tremendous leeway given to the Governors. This is sought to be exploited in states across the Rust Belt where there exists Democrat administrations. For all the talk that US does about promoting democracy it is time they put to practice the same in their backyards. For all said and done, the kind of manipulations one witnesses in the US are hardly visible in India. For all the criticism on polls in Bihar or UP or Bengal among other places, the polls are free and fair relatively speaking. There exists an independent Election Commission that has conducted the polls with distinction. Over the period of time, they have asserted themselves when needed thus paving way for a free election. The manipulative practices with the introduction of EVMs has come down drastically. The testimony to hold Bihar elections in mere three phases during the pandemic period is a sheer example of the journey Indian election system has travelled.

 

Further for all the criticism of the Indian media both print and television, they did not execute an agenda that sought to virtually create a defeat for Modi. In fact opinion polls mirrored the mood though very cautiously. After the 2004 fiasco, many pollsters forecast cautiously giving themselves room for wriggling out in case of anything going wrong. There are enough instances of under forecasting certain parties, say UP-2017 but none of them are such that they seek to project a verdict that is likely to be diametrically opposite of what they had predicted. None of the lead forecasters barring an exception or two indicated a close election. Those who did indicate Trump momentum were sought to be discredited. As such, the elections in the US only highlights the political nature of the society and the extent it can go to further its agenda though nothing unusual in the context. Compared to the same, India comes out with flying colours. Maybe they have a lot of lessons to learn from India.

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