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Showing posts with the label conservative economics

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

Of Economics, Right and Left

  In recent days, there was news that Amazon is forcing its employees, especially the delivery team to urinate in bottles so as to save time. This is something that has come to be associated with what is wrong with capitalism and its variants and mutations. What Amazon seems to have done is nothing unusual if one goes by past precedents? There are countless stories of excesses by the capitalist enterprises in terms of their treatment of the employees. Instances from China highlight how poor conditions haunt the workers who assemble a Nike shoe to an Apple iPhone. They work in conditions that are pathetic and little time is given even for meeting their biological requirements. Instances of pregnant women being harassed and dismissed in factories from China to Sri Lanka to the Central America to avoid meeting maternity leaves and similar perks too have been well documented. The sweatshops as these get branded have been considered by a school of thought as something unavoidable evil in th