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Showing posts with the label woke capitalism

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

Deciphering Woke Capitalism

A phenomenon that one observes in recent times is the tendency of many leading firms or what one calls the Fortune 100 firms to appear politically correct. In more ways than one, they seem to be focused on pandering to what is termed woke activism. They seem to comment quite often on social justice issues with points of view being what is dubbed as politically correct. Firms from Pepsi to Gillette among many others seem keen to go out of the way to demonstrate their woke credentials. This assumed certain important proportions when many firms decided to boycott Facebook for a month and thus not advertise on the platform. The ostensible reason is the Facebook not demonstrating its liberal credentials sufficiently and its ostensible inability to monitor what woke activists term as hate speech.   Facebook does monitor hate speech and has been aggressive in taking down offensive posts. But woke activists are not impressed enough. To them, it is a conservative platform that seems to prid