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The P-C-B theory and intolerance May 19, 2007

Posted by Sharath Rao in economics, littlerockers, videos.

On whats common to Richard Gere and Mahmoud Ahmadinajad – both got into trouble thanks to a kiss ( or abundantly more of those ). Read some detail here.

Iranian President Mahmoud Ahmadinajad is being slammed by Iranian newspapers and Islamic groups after he kissed his teacher’s hand during a celebration, on the occasion of Iranian teacher’s day.

I was on the phone the night before last, talking to a lady teacher from school (BJ for those know LittleRock) in a conversation that lasted over 2 hours. In another country, the conversation may not have happened or one or both of us would have paid heavily for it. A related article, see that at least for that really lovely picture there.

And yeah, when it comes to intolerance, this is rather hard to ‘better’ ‘worse’. By the way, how many such instances should take place before you are asked ‘not to generalize and that these are just rare occurrences involving fringe elements.” How broad is the fringe in this case, dear people ?

Update : Vir Sanghvi is tired with the topic as well.


P-C-B. Not the Physics-Chemistry-Biology ( as I would said 9 years back ) or Printed Circuit board ( 5 years back ). True to the economist in us, its more like Payer/Chooser/Beneficiary.

Incentives are greatly aligned when the Beneficiary is also the Payer and the Chooser of a product. The greater the social distance between the three entities of the P-C-B, the weaker is the alignment of incentives to have effective markets. The best case is that of private spending for a car where the P-C-B entities are vested in one. The worst case is that of public spending where the entities are extremely disparate.

The pseudo-self-centric message is – Want something only if you can pay for it and choose. Pay for something only when you get to choose and when its for yourself. And (choose to) choose something only if you are paying and if you want it :-). And let everyone know this ‘change in your behavior’ as well.

Maybe it doesn’t apply to the ‘kids’ economy’ where the mom (dad) chooses the dress her/his son/daughter wears and the dad (mom) pays for it. 😉


For non-atheists and atheists alike.

Non-atheists may learn how to converse with atheists and atheists shall learn how to converse with non-atheists.



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