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

Defectors Vs. Original Party Workers

 

Election season comes with its own idiosyncrasies one of which is the defections. The days of Aya Ram Gaya Ram might be over in the traditional sense due to the prevalence of Anti-Defection Law but nevertheless, they continue to find new modus operandi to defect. To the political party taking in the defectors, there are multiple reasons. These reasons were captured in an earlier post “The Allure of the Political Defector”. It highlighted the several factors that go in the party’s decision to admit the defector. These issues once again seemed to have gained traction in the view of recent defections to the BJP in West Bengal. Suvendu Adhikari once a key a Mamta lieutenant has now changed boats and is sailing with the Modi-Shah boat in the run up to the Bengal elections. There are reports of a large number of Trinamool MLAs besides those from the Congress and the Left joining BJP prompting some to wonder what would be the fate of the original BJP workers. There is a good possibility of the original image of the BJP being reshaped. To add, there is a question of would the newcomers remain loyal to the party. There are apprehensions, perhaps rightly so to substantial extent, whether the defectors would have any incentive to stay in the party if the party does not remain in power. Therefore, there must exist some analysis on the possible outcomes of such defections, irrespective of the underlying reasons for defection.

 

Defectors forming the bulk of the party is not unknown. In fact, the current BJP government in Arunachal Pradesh is essentially the Congress party in the state. Pema Khandu merged his Congress into the Peoples Party of Arunachal which later merged with the BJP. This happened in the past too when Gegong Apang merged his Arunachal Congress into the BJP in 2000s. there is an instance of Bhajan Lal merging his Janata Party into the Congress en masse in 1980 to avoid being dismissed by Indira Gandhi. Incidentally, he went on to have very significant influence on Mrs. Gandhi and thus acted as a road block in more ways than one in finding a solution to the Punjab crisis of the early 1980s. While these have been post poll mergers in certain context, the question does emerge over the large scale pre-poll defections. At the outset, the party must weigh its options on the mode of growth. It must decide whether to opt for an organic growth route or adopt a route of inorganic growth. The route of organic growth would perhaps be long and might result in a long period of below average returns. The state political landscape might vary thus limiting the reach of the political parties. In this context, if the party wishes to expand into new territories, it must recognize the possibility of inorganic expansion. The growth to a certain steady state might take long and in the process, the party might lose a lot of voters who would have come in anticipation of victory. Sustaining a loyal base might be a detriment.

 

The alternate route, the parties found was to form alliances. In fact the late 1990s was more of the political defectors forming smaller parties which they could use to bargain with the larger parties when the country was facing the landscape of coalition governments. In other words, Nitish Kumar instead of being poached by BJP from Janata Dal, formed the Samata Party which allied with the BJP. The Samata later morphed into JD-U. In the coalition era, the cost benefit analysis favoured the smaller parties. Therefore, the defectors would not be admitted into the party but would be a part of another party. The political party would thus keep its ideology intact, allow its original party workers and leaders say in the party but remain a junior or senior partner as the case might be in the coalition government. This is how BJP perhaps ended as a junior partner to the JD-U in Bihar. The same perhaps went true with the other states as well. While BJP perfected this in the late 1990s, Congress was a bit late to the party.

 

In the current scenario, the paradigms are changing. While the ruling party can continue to exercise certain say in the coalition, but it might not be long lasting. The partners, junior or senior could migrate at will depending on the political contingencies. The BJP for instance found out on numerous instances in states from Orissa to Bihar to Karnataka to Maharashtra in the last decade or so. Therefore, a party might view getting into a partnership might be detrimental not just to the party growth prospects but to the coalition itself where it might find itself wanting at a critical time. Induction of defectors would perhaps solve this problem or at least is perceived to. In fact if Naveen Patnaik or a Nitish Kumar were to be the Chief Ministers of the States either way, it would have been better had they been part of the party rather than a partner with free will to go. Inducting them into the party imposes certain transaction costs with no easy barrier to exit. Moreover, the prospects of growth within the party might make them take different steps. In fact within the Congress, it would be the loyalty to the first family of the party and in the BJP it might be a trip to Nagpur.

 

The political party’s dynamics within the state would depend upon a certain personality who would carry votes with him or her. In absence of any ground level leader who can mobilize votes, they are forced to look for lateral inductions. The model to retain the party ideology would be to make these lateral entries come through a coalition route which brings with it, its own hazards as seen above. An alternative is to bring them within the fold. Every political arrangement is temporary. It is something that is well known to all the leaders in the decision making calculus. The political strategies are based on convergence of interests than any other aspects. Therefore, it would should not be shocking of admitting defectors. Every party only admits a certain percentage suiting its requirements. The alignment would work till such time the party gains sufficient traction on its own when its organic bred leaders start emerging. Therefore, rather than a sell-out, it must be viewed in a context of immediate gains and consolidation in pursuit of the party objectives.

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