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Showing posts with the label JioMart

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

Decoding the Tata Big-Basket Deal

  The e-commerce market in India is looking for boom times. The market which for long seemed to be finding difficult to cross the Moore chasm seems to be moving to headier times. Reliance with its JioMart might shake things up like it did in telecom. It has managed to get numerous investors on board Reliance Retail and Reliance Jio. Meanwhile, there is a battle building up between Reliance and Amazon that is being fought over India in Singapore with the issue being of their rival Future Group which perhaps is facing testing times. The e-commerce market too faces network externalities. The number of apps an individual users uses in his or her smartphone is obviously limited. It is difficult to experiment with multiple shopping options. By and large barring exceptions, most users prefer to shop from one or two apps. Without doubt, it is important for an e-commerce user to be on the top of the mind recall for an individual user. Very few would be willing to experiment with multiple shoppi