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Showing posts with the label knowledge economy

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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A Course in the Digital Economy

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  It would be an understatement to talk that the world is very different than it was let us say twenty years ago. When the new century dawned, there were number of things that one could not have imagined would exist barely twenty years later. In 2000, the Google was not yet born. While the www was in its infancy about to slowly evolve into an adult, it was very different. The connections were very slow and the internet penetration was minimal. The emails were making an appearance. It would not be unusual to find in those days many creating their first email ids during their post graduation days. Those were the days when the teachers of information technology would offer assignments on basic MS-Word, which perhaps is now taught to kids in the primary school. People were barely exposed to MS-office or its numerous facets. There was hardly anything called a smart phone. The internet enabled phones could perhaps be counted in a hand. Yet twenty years down the line the world has changed. It
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