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Showing posts with the label normative vs positive

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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Constitutional Originality and Indian Liberals

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  In the United States, the Senate hearings on nomination of Judge Amy- Coney Barrett is of course evoking a strong and passionate debate. The timing is what it matters. The intelligentsia on the Democrat side prefer waiting for the November 3 elections before the nomination happens. If Judge Coney Barrett, gets confirmed, the Supreme Court will be heavily weighing in favour of the Conservatives. The Democrats, if they win the elections, can propose to increase the strength of the Court, yet it is about the adjudication of any disputes that might arise in November 3 elections that gives a strong edge to the Republicans in the judiciary. There was an interesting article by Cass Sunstein in Bloomberg Judge Coney Barrett. The article is available here and Sunstein’s tweet on this is available here . There is an interesting response by noted economist Oliver Blanchard to the tweet of Sunstein. The response tweet is available here . The article and the tweets around that article centre a
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