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Showing posts with the label surrogacy market

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

Surveying Repugnant Markets

Markets conjure several things. They allure a numerous. There exist many types of markets. One talks of stock markets- the market for ownership; there are commodity markets at B2B levels, B2C levels- commodity exchanges, food markets, retail outlets, wholesale outlets; there are markets for financial capital- debt and equity markets; there are markets for goods and services and more. To economists of classical and neo-classical school, markets perform the role of allocation and distribution fo goods and services best. To them, Pareto efficiency is something best achieved through market mechanisms and not through central planning. Yet there are markets which people find it nauseating or repulsive to see they exist. In fact, the very idea of certain goods being exchanged in a market model is something that would be contrary to the norms established in the cultural context. In some geographies and societies, some of these markets might find favor yet in many others there are seem s