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Showing posts with the label role model

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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Economics Motivators of Activism

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  There is apparently quite a bit of divide that has emerged with the recent arrest of an environmental activist Disha Ravi from Bangalore in connection with the Republic Day violence and aftermath. Disha apparently is aged twenty two and thus seemed to find sympathy among the section of the crowd that is egging on her. Her supporters are of course bounded by a common dislike often degenerating into a pathological hatred for Modi, which would make her their celebrity hero irrespective of her age. Age might just be a number. Conceivably, Disha began her activism at age of nineteen and has evolved from an environmental activist into one of anti-establishment activist. There might be an irony she is fighting in favour of those farming interests, singularly responsible for environmental degradation of Punjab and Haryana. Rather than examining the merits or otherwise of the case, it would be instructive to decode her motivations for activism. It begs to be understood why youngsters are attr
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Pakistan and Role Model Dilemma

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As one comes to terms with the horrors of the recent massacre of school children in Peshawar, What probably went unnoticed were the names of the children who either died or escaped.   Names like Osama, Dawood Ibrahim seemed common.   In a world where names are usually associated with aesthetic or even predictive powers, these names mean something. If names are meant to convey certain signals, these do certainly reflect in a way contemporary mindset of an average Pakistani.   Stephen Levitt in his bestseller, Freakonomics goes on to discuss the economics behind names. Yet, the explanation does not answer satisfactorily, the state of affairs. Incidentally, the broader theme around which Levitt’s ideas revolves around- role of incentives; might help us in some way to understand what it means.   At the heart of the society and its inhabitants is the need to achieve, urge to succeed, climb the higher layers of the power pyramid, places oneself at the apex of the profession. Yet to
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Reality shows, fashion parades, cricket coaching classes, entreprenurship- what binds them together?????

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What makes people attract towards reality shows? Why do you see such a craze among parents to put their wards for cricket coaching classes? We see mushrooming of cricket coaching centres each advertising that the kid is a potential IPL player? Similarly what makes a industrialist like N,R.Narayana Murthy a role model for many a family? If this is not enough, take the craze for shopping festivals and modelling contests or fashion parades. Each of these activity may seem disconnected yet a common chord binds these all. People respond to incentives. A reality show winner is a kind of role model of many others aspiring that success and the rewards that come along with that success. the chances of success are not high yet the fact if we win, we hit a jackpot make the people crazy. One will not produce a Tendulkar, Richards or Dhoni or Steyn everyday. the success and the accompanying rewards that one gets makes kids and their parents want to try hand in cricket. Along the line at certai
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