chennai, first of all, is a very conservative place in india. with the influence of globalisation and the small world it creates, there is a constantly changing and forward moving path that always marks an attempt to reconcile tradition and the influence of contemporary capitalist society. on the one hand there are temples everywhere which all still command a devout and incredibly large attendance. on the other hand, i've never felt more like the incentives of diminishing marginal utility have every seemed more real than right here in india. auto drivers for example must be haggled with. the minute a driver sees me i am associated with wealth and he will inevitably try to rip me off (this happened the first few times i rode an auto). however, there comes a point at which you start to get a sense of the right prices, the right way to talk, the right way to bargain. its pretty much game theory. i set a ceiling price that i know is the most i'll pay without getting ripped off. if i can't get that price i just keep walking. i continue down the road and do the same thing with the next driver. usually one of two things happens. 1. the second driver has seen me haggle with the first and thus knows that i'm not a complete idiot. thus he is willing to accept a lower price since he knows he can't rip me off as much. 2. the first driver sees me talking to the next driver and doesn't want to lose money. he can still make money without ripping me off. in fact, i'm one of few tourists here (it is not a big tourist town according to lonely planet). so most of there business comes from an informed local population. thus, this driver comes up behind me and agrees to take me for my ceiling price. microeconomics at its best.
here's the irony. even though i'm in one of the most traditional and strictly hindu areas of the country, a rationality associated with modernism and western thought still seems to be thriving in a very non western and conservative culture. what does this mean? again i think we have one of two options. 1. the rationality put forth by the law of diminishing marginal utility has been so ingrained in western thought that it has permeated a very non western society to its core. western social influence then has a much larger role then initially is apparent. a very non western society still exemplifies the rationality of western neoclassical economic thought at its core. 2. diminishing marginal utility and its incentives may be the very animal in us. it may be that biological instinct that keeps us alive. when pushed to your limit. when labor is so cheap, how can you blame a driver for wanting to rip me off. otherwise he may go very hungry. this doesn't mean i'll let him rip me off. all i'm thinking is that its quite a possiblity that although neoclassical economic thought may be wrong by suggesting that diminishing marginal utility and its incentives are the only thing that runs our lives. but this school of thought may also be right in suggesting that a large part of us follows this rationality. it is our instinct, it is our will to live. at least as i see people living on pure will, i can see no other will at work than the one following a basic microeconomic model, exemplifying diminishing marginal utility.
this may also explain a bit why raja is the way he is.
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