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Showing posts with the label supernatural

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

Economics and Eclipses!

Eclipses evoke fear, mystery and awe alike. For ancients, it was certainly a mystery. They would have been ignorant of a natural phenomenon that does not experience a frequent occurrence. During total solar eclipse when sun disappears and darkness abounds in the midst of the day, they would have certainly been fear struck and panic ensued for those few moments before the sun began to take ‘rebirth’. Given zero knowledge of science, it would have been most likely to be attributed to super natural forces. Within perhaps centuries, mankind probably make sense of eclipses as phenomenon that occur though the natural linkages might not have been established. To some ancient civilizations, there were astronomers who could predict eclipses in advance. Evidences of eclipses are found in ancient Hindu scriptures and mythology like Mahabharata etc . Given the supernatural attribution to eclipses, it gave rise to several theories and practices. Astrological significance would have added