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Showing posts with the label self interest vs community interest

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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Compulsory Vaccination and Self Interest

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  Now that there is some certainty in the vaccine policy announced by the government of India, it remains to be seen how the process would be carried out going forward. The government has set itself an ambitious target of vaccinating every eligible adult in India by the end of this year. The target seems quite unrealistic especially going by the current pace of the process. The pace was picking up in April before the government decided to engage in some competitive politicking which led to the chaos and unavailability of the vaccines. Moreover, the hesitancy on the part of the government to order vaccines beforehand too played a role in vaccine shortages. The government had clearly found itself on a wrong foot when the second wave stuck. The demand for vaccines multiplied manifold but there were no vaccines. There was perhaps no homework on the part of the government to cater to such eventuality. There still exists a denial over the prospective third wave. Any derailment of vaccine pro
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