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Showing posts with the label Indian government

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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Central Encroachment into Cooperatives

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  The Modi government is set for a Cabinet reshuffle. In the midst of the reshuffle, there come the news of creation of new Ministry. The ministry is of the Department of Co-operation. The intended objectives seems to be facilitating the growth of cooperative societies across states and build by multi state cooperative societies. The cooperative movement while having roots across states is confined in terms of its structure to a single state and cannot go beyond the boundaries of the state or perhaps the district. Amul for instance would be confined to Anand district and not go beyond the same. The same thing would perhaps hold good for Karnataka Milk Federation. This is true of many cooperative societies across the country. The ability to leverage the scale and scope is constrained thanks the legislative framework in place. If there needs to be changed to allow the successful cooperatives to flourish, there needs to be changes in the legislative and governance framework.   There m
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Games State and Private Actors Play Jeff Bezos and the Indian Government

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Jeff Bezos visit to India was overshadowed by few related political incidences. One was ostensible refusal by both Prime Minister Modi and Commerce Minister Piyush Goyal to meet him. Secondly, there was a statement on Amazon attributed to Goyal. Apparently, Goyal had hinted Amazon was not doing any favour by investing in India and instead the investment was in their own self-interest. It might be a different matter that the statement was twisted as usual by the media over-eager to hit back at the government. Yet, for all the outwardly deceptiveness of protection of small grocers,  at the heart of the kerfuffle, was the seemingly biased reporting by Bezos owned Washington Post in recent times on India. An analysis of the same can be found in the piece ‘ WaPo and White Man’s Burden ’. Government industry relations have always been one of jigsaw puzzles. To the industry, government would be the forum where they would love to shop for protecting their domestic markets from foreign en
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