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Showing posts with the label 1967 Six Day War

Decision Making as Output and Bounded Rationality

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  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
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Should India Do a Israel 1967?

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India China tensions at the border continue to build up. Talks are on for possible disengagement but despite the apparent movement towards de-escalation, there is hardly any change on the ground. The site of the clashes in the Galwan Valley was about the Chinese obstinacy in refusing to withdraw behind the agreed points. Yet the moment clashes ended, China seem to be back at PP-14 in the Galwan valley. The tensions are far higher in the Pangong Tso area where the disengagement is around the grey area between Fingers 4-8. The Indians are moving to occupy the heights and the tensions are unlikely to subside. Given the trust deficit that exists between the two countries especially after the Galwan incidents, it is unlikely that India will scale down in response to Chinese possible de-escalation moves. On the contrary, there is hardly any optimism or even expectation that China will back down despite its humiliation in Galwan. There seems to be all the more reason for China to hit back and
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