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Showing posts with the label Indo-China face-off

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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China, India and Afzal Khan

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  The winter is seemingly setting in Ladakh yet there seems to be no end in sight for the standoff that has ensued since April this year. The Chinese forces are digging in and reinforcing. Ditto for the Indian forces. The mind games are truly on. Similarly, the Indian forces have taken control over series of peaks hitherto unoccupied and overlooking the Chinese positions. If it was believed China had occupied the strategic heights in the early part of the summer, as the winter sets in, it seems Indians have occupied strategic heights in some other sectors. While the game might moving towards a Prisoner’s Dilemma, yet no one wants to be the ‘Chicken’. It seems a game to the finish. It is unlikely that the game will have any other ending other than the fight to the finish in the long run. The current standoff are more an exercise of preparation for the final war. It is about buying time for the final preparations. The long negotiations are aimed at wearing down the enemy. Each side does
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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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