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Showing posts with the label e-commerce

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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Decoding the Tata Big-Basket Deal

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  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
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Kiranonomics !

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Across the world, the economy has come to a standstill. Few exceptions might exist however, indicators like declining oil prices (negative futures), decline in shipping, and restrictions on sale of non-essential goods remain in place in most parts of the world.   India too is no exception. India was one of the frontline markets for e-commerce and supermarkets. In India over the last couple of decades, there was a movement from the unorganized kirana retail outlets to an organized retail outlets comprising of super markets, hyper markets, malls among other things. In the emergent context, these super or hyper markets too were facing challenges from the rise of the online e-commerce giants including Amazon, Flipkart (acquired by Walmart) among others. The spread of the organized retail both offline and e-commerce did not confine merely to the few upper income groups and demographics in urban areas but pervaded deep into the semi-urban and rural clusters as also the urban low incom
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