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

US Election Wobbles- Lessons to and from India

 

The twists and turns in the US Presidential election counting seem to surprise but should not surprise. The manner in which the votes are being counted leave much to be desired. It apparently seems the Democratic Party machinery leveraged the absentee ballots well to bring down Trump. Apparently, they had to bring down Trump irrespective of what it takes to do him. The pollsters had predicted a heavy swing towards Biden yet it did not materialise. They too have their reputations to keep. Therefore they too have a vested interest in calling more states for Biden so as to come true in terms of their electoral college landslide prediction. If they had predicted a Georgia flip, it must happen irrespective of the means it takes. Trump too is unlikely to go down without a fight. As things stand now, it looks the elections will be challenged and the Republicans hope that the conservative majority in the Supreme Court might hand them the victory.

 

There is no doubt prima facie, that there appears to fraudulent means at work to snatch victory in key states like Pennsylvania, Michigan, and Georgia among others. Reports of long dead people casting votes through absentee ballots is making rounds. The reports of Republican observers being shunted out of the counting rooms is hardly inspiring. Numerous reports partisan or otherwise are floating on hundred percent plus voting. Voting seems to continue even after counting is over and they too are being taken into account for counting. These issues arise primarily because each state has its own set of rules when it comes to managing elections. The Federal Election Commission regulates only campaign financing and most of the times is toothless.

 

Compared to US, India is perhaps far more advanced. The advent of EVMs have reduced the probability of electoral fraud. The election commission in India is independent. It is not that India did not witness malpractices. For decades at least until 1989, Congress had a monopoly over election management. It was not unknown for the ballot boxes to be replaced while in transit. It was not unknown to mark ballot papers with extra ink to make them invalid. There were enough instances when opposition agents were thrown out of the polling stations or the counting centres. From 1989 onwards, the Congress monopoly was challenged by the heartland who adopted the same techniques. The violence in late 1980s and early to mid-1990s especially in Bihar was a direct result of these contestations at the booth. The multi-phase voting in India emerged because of the election related violence. Yet the Indian election commission starting from the 1990s constantly asserted itself barring few exceptions like Naveen Chawla to ensure free and fair polls. Yet the centralised election commission in the US was not possible. Nor the US desires to have centralized model for Presidential elections. In India, the local body elections come under the purview of the State election commission and evidence from Bengal points to similar instances as we see in US.

 

There is another positive point in India. This relates to virtual absence of mail-in ballots for people outside election or national service. In the US, the Election Day is not a holiday. So therefore to facilitate voting, people can cast their votes in advance either in-person or through mail-in ballots. The acceptance of these ballots and time frames are essentially left to the states. If there were to be mail-in ballots introduced in India, the situation would be very similar. Parties could very form strategies to leverage these mail-in ballots to their advantage. In fact, even in these times of the pandemic induced by the Chinese virus, the election commission has not extended the postal ballot facility to others. The only exception seems to be those above eighty years of age and those who are physically handicapped. In the light of the US elections, this seems to be one of the best decisions taken by the commission. Once a practice is allowed even though they might be extreme circumstances, the practice becomes the norm. Sooner, it would turn into a strategy. Without the system to undertake double checks, this system might collapse and turn into a free for all. Unless there exists a system with sufficient checks and balances with robustness, there is no way forward for the postal ballot system.

 

Unlike India, where the central election commission acts independently and acts with authority, the US has never seen such things. The problem in the US derives itself from the structure of governance. Unlike India which is federal and the central government has residual powers, in the US it is the states that have the residual powers. The US built itself as Union of States that came together in specific circumstances. Post the War of independence they came together to form the United States of America. Yet for the crown colonies, they had to face certain trade-offs. They would have to surrender their power and privileges to the federal government. In exchange for surrender they demanded something in return. This meant that states would have powers more than the provinces in the other countries. The states got tremendous leeway and even the right to secede something that later led to the civil war in 1861. The states evolved their own framework in almost every aspect. The elections too were no exceptions. They framed the policy for elections to be conducted in the states. To the elections for US House or Senate, they got the freedom to frame the mechanisms essential. Though in later years, it was the federal laws that led to the uniformity in many aspects, the procedural aspects remained the preserve of the state. Therefore in the presidential elections, from the candidate filing nominations and thus being on the ballot to the conduct of the elections, the voting procedures, and the counting process everything differs from state to state. Each state would set its rules prior to the elections. This leads to wide variance in the electoral practices. States would anyway resist on many grounds the desirability for uniform practices across the states. In India, the creation of the country was top down. Therefore the central election commission could frame uniform practices across the states. In fact Jammu and Kashmir had its own election commission at least until 1967. The electoral credibility of J&K was thus eroded in the first two decades and perhaps are in some ways contributing to the problem there.

 

As observed above, it is evident that the differences are in part due to the evolution of the modern nation in these two countries. While India emerged top down, the US emerged bottom up and hence the differences. Therefore, in many ways, despite imperfections, Indian elections have been a continuum to a journey of perfection and fairness while US has moved in the reverse direction.

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