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Showing posts with the label sensitivity (testkng)

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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COVID-19 Testing, ICMR and the Way Forward

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Sometime back, the post “ Rationality of Indian Testing Strategy and Chinese Flu ” examined the course of Indian testing strategy and philosophy in reference to diagnosis of the Chinese flu. The synopsis of the post was summarized as ‘Contrary to the demands of the testing mafia, the focus should be on testing large numbers in areas worst affected by the Chinese flu rather than blind and random testing across the country’. The post had concluded that the then strategy of conservative testing was working well given the Chernoff bound and thus little need existed for the change as suggested by certain groups. In a recent post, “ The Impossible Trinity of Chinese Virus ”, it was posited an existence of an impossible trinity. A country cannot have conservative testing, open economy and low reproduction ratio simultaneously. These two posts at some level appear to contradict each other. As with any event, facts emerge necessitating a change in approach. The thought process is dynamic and he
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