Archive for September, 2009

Limited understanding…

I have a limited understanding of a number of things. I also have no understanding about multiple things. In fact, the equation is ‘no understanding’ > ‘limited understanding’ > ‘a little more than limited understanding’. Total understanding of any one thing tends to zero. Having got the disclaimer out of the way, my thought structure [...]

Favorite Books – A List

I had a couple of requests, both on the blog as well as off it to list out good books that I have read. This blog tries to address the request. A note of caution though. I believe every reader’s taste and perspective is different. Therefore, it follows that the books I liked (and which [...]

Books – To read or not to read

I love reading books. I was by no means a voracious reader till my late teens. After that, I devoured every book that came my way (fiction and non-fiction alike) and enjoyed them thoroughly. But as I realized later, over the past 4-5 years to be precise, I did not like all books. In fact, [...]

Grand Unified Theory (GUT) = Signaling theory + Incentive theory

My previous post on Signaling theory My previous post on Incentive theory The two posts above over the past couple of weeks were essentially intended to explain the Grand Unified Theory (hereby referred to as GUT). So, what is GUT? Signals and Incentives are intertwined with each other. I’d say, if incentives are to be [...]

Incentive Theory – A Primer

Incentive theory is primarily a psychological term, explaining the relation between motivation and behavior of the individual, as shaped by profitable intent. Let me explain. The heart of economics deals with incentives. Incentives shape the behavior of an individual. These incentives need not necessarily be monetary. They can be non-material forms like love and respect [...]