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Showing posts with the label growth triangle

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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Characterizing the Global City

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Three major urban trends are being observed was we head into the third decade of the present century. Antagonistic to most estimates, population growth rates slowed down for many cities in developing countries. The largest cities in the emerging countries experienced a slower rate of growth since 1980s relative to previous two decades. The world is now less dominated by very large cities than predicted earlier. Less than five per cent of the world's population lived in megacities in 1990. The prediction that cities such as Calcutta and Mexico City would evolve into gigantic metropolises of 30 to 40 million inhabitants, is unlikely to fructify. Linkages between urban change and economic, social, political and cultural change remain somewhat ambiguous. Some large and rapidly growing cities have been well-managed and serviced perhaps contrary to assertion that size exhibits diminishing returns with respect to city management. In fact, some of the worst physical conditions have
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