Viswanathan K's Thoughts

Once upon a time, economics was based on the assumption that human beings are rational. This is obviously false, so why was the assumption even made? Because without such an assumption, the field of economics couldn’t progress – how far can a theory that assumes people do irrational things ever progress? As that old saying goes, “All models are wrong, but some are useful”.   As economic theory started to influence government policies, the scrutiny and criticism of economic theories increased. Inevitably, that core assumption of rationality began to draw a lot of flak.   A new field called behavioral science developed – this basically said that humans often make irrational choices. The factors for that extend far beyond stupidity – they include all the unconscious biases that make us, er, human. Such as generalizing from just a couple of personal incidents to the universal; or only noticing facts that align with what we already believe. With this as the basis, a new form of eco

  Why is there such a huge mismatch between the number of medical seats and the number of kids applying for them? Going by instinct alone, and from what we hear from parents of kids, well, that approach doesn’t get us to all the right reasons, I realized as I read Pranay Kotasthane’s post.   Few, he says, talk of the topic dispassionately: “Ask anyone about MBBS education in India, and they will launch into a tirade about how the “commercialisation” of medical education has turned it unaffordable.”   But let us be more analytical than emotional. Prices are high because the demand is far greater than the supply. Usually, when such a condition exists, more producers enter the market, i.e., more medical colleges should have opened up. So why didn’t that happen?   Because nobody wants us every Tom, Dick and Harry to open medical schools, do we? What kind of doctors would we end up with? Obviously then, regulations are needed on the criteria to open medical schools. The Medi