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Showing posts with the label conversations

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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Social Media, Alternate Reality and Real Life Conversations

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  The post “ Deciphering the Social Media Ranting ” discussed the possible reasons why people rant on social media especially Twitter. The post used the theory of signalling in economics to explain why people rant about each and everything to get noticed. A simple post might not attract attention but continuous rants and slogan shouting would perhaps enable them to get noticed, get followers and perhaps at some point achieve a sort of celebrity status. It is just not mere ranting but the way people form opinions and sort to push their opinion that would be of interest. Often, it is made to believe that the opinion of the social media becomes the opinion of the people. It is made to believe that the social media represents the cross section of the people and thus appropriate sample of the views of the population at large. It is made to believe that the mood of the country or the society is best reflected through perusal of the views being expressed through the social media and other con
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