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Showing posts with the label India politics

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

Celebrities in Politics

  The news emerging from Tamil Nadu is a sort of anti-climax for those who believed some churn happening in Tamil Nadu post the entry of noted film star Rajinikanth into politics. The much awaited entry of Rajini as he is known has turned into a non-starter. Ostensibly on the advice of doctors, Rajini has decided not to venture into politics. For all the suspense he had created and the air of intrigue that was built over, it seemed everything was perhaps speculating in the air. The forthcoming Tamil Nadu elections will be the first after the death of two stalwarts Jayalalitha and Karunanidhi who strode over the state politics for decades. The AIADMK was struggling with the current leadership yet to gain acceptability while Stalin is facing his first independent test in the Assembly elections. With the DMK having a clear edge, Rajini was expected to turn the things around and bring about a new direction in Tamil Nadu politics. He was an outsider whom his fans believed could turn the sha