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Showing posts with the label medieval period

Decision Making as Output and Bounded Rationality

  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

The Rationality of Medieval Punishment Practices

  It has been stated many times that economics is about behavior. Demand and supply are mere manifestations. Economics is concerned with how people take decisions under various circumstances. There is a positing about rationality in decision making. Economics assumes agents are rational when they make decisions. Implied is the agents are well aware of the cost benefit analysis when they exercise those choices. While the exercise of choices might seem irrational or weird to the observers, yet to the agents, there exists a certain calculations that would have gone into their choice. The behavioral economics contests this proposition, yet it is more about decisions under cognitive constraints or informational constraints. It is about boundaries to the rationality in terms of decision making. Therefore, behavioral economics talks about bounded rationality. Yet within these boundaries, there does exist a cost benefit analysis towards execution of preferences. Not evaluating every possible c