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Showing posts with the label Golden Quadrilateral

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

Economics Primer in Real Life- Transportation Infrastructure

In any discussion on economic growth and development, the role of transportation has a prime position. Transport economics thus would deal with the semantics of transport infrastructure and mechanisms that propel economic growth in any country. Often when economy is slowing down, the focus shifts to the transportation infrastructure. There is increased emphasis on transportation infrastructure as things gather pace. There will increased movement in construction of new roads, railway lines, airports, shipping lanes, waterways among other things. It is not just the emphasis on the national highways but increased allocation and work happens on the feeder roads and rural roads also. It is not just about new railway lines but enhancement of existing railway infrastructure also. It is not about more air traffic but increased connectivity to more cities and tourist destinations. N the context, it would be pertinent to examine a couple of instances wherein one finds an economics dimension appl