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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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Woke, Pricing and Corporate Social Responsibility

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Corporate Social Responsibility (CSR) is a Veblen good. CSR exhibits as a corporate woke. In meeting the wants of materialistic possessions, presumably natural resources are plundered. The resources being non-renewable suffer from exploitation reaching a stage sometime in distant future wherein there will be no resources available for production of future goods and services. In destruction of natural resources, humans in their alleged selfish motives destroy the environment thus laying the foundation for prospective future calamities. Corporate driven capitalism models in pursuit of short term profits destroy resources without inhibition thus allegedly the primary culprit in environmental degradation and destruction. To critics of capitalism, it is not people who demand things but corporates in their goal of profit maximization manufacture demand. As a saying goes, corporates will sell people ropes so that they can hang themselves! Moreover, the resources per se have no ownership, th
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