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Showing posts with the label entrepreneurship

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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Jan Bhagidaari, Signalling and Bottom of Pyramid Entrepreneurial Creation

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  In the presence of information asymmetry, it is difficult to gauge the intentions of the opposing party. The only way to detect any possible moves is through a careful observations of the signals they are likely to send. Thus signalling is of critical import in economics. In the past posts, the role of signalling has been discussed in certain contexts. The current post would seek to take it forward. Recently there was a communication from the RBI Governor to the players in the debt market be competitive and not combative to achieve the best results. There is a tendency in the section of debt players to act pro-cyclically in tune with RBI whereas the others might act counter-cyclically to the RBI stance. This often negates the RBI purpose and thus monetary transmission might not achieve the desired results. This of course in some ways reflects the tragedy of commons often discussed in economics literature but owes its origin to biology.   Yet in discussion on signalling, two dimen
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Today's Imagination, Tomorrow''s Reality: Sci-Fi and Entrepreneurship

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Imagination with all its wildest possibilities yearn to be released from the human mind into actual reality. The expression of grammar of imagination might be story, visual, movie, art, audio, novel or oral conversation. The outcome however remains the same: far reaching, wild, perhaps bizarre, perhaps practically unimagined set of things that human might ever create and use. The outcome, to its progenitor might appear most marvelous, irrespective whether the public at lare perceive it to be crap or otherwise. Yet few might escape the crap trap and generate into hard core imagination underpinned science fiction expressed through visual, written or audio means.   Science fiction is best expressed as an output generated with infinite degrees of freedom for imagination. Science fiction is not a mere work of fantasy. Adventures and challenges endear to humans thus the foundation for visualizing a universe with those infinite challenges. Invariably, there exists a hero who conque
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