Nobel for high theory in troubled times
Harvard University’s Oliver Hart and Bengt Holmstrom of the Massachusetts Institute of Technology have won the 2016 Nobel Prize in Economics, at a time when public perception (अभिज्ञता/समझ/बोध) of the discipline is bleak (निराशाजनक/बेरंग/सूना) .
The committee appointed to select winners has chosen shrewdly (बुद्धिमानी से /चतुराई से) . The work of Hart and Holmstrom revolves around relatively esoteric (गूढ़ /गुप्त) subjects like contract theory, modeling corporate structure, principal-agent relationships, information asymmetries (विषमताओं) and the like, all garnished (अलंकृत करना) with heavy dollops (जोड़ा गया (सुधार के लिए) of game-theoretic mathematics.
Some of this work has real-life applications: Hart’s work has influenced lawsuits between the US government and companies. But the rarefied nature of this sort of research makes it less susceptible (संवेदनशील/आसानी से प्रभावित होने वाला) to lay criticism, unlike, say, the work of Friedrich Hayek or Milton Friedman, proselytizers of unfettered (निरंकुश/मुक्त) markets and monetarism (the theory or practice of controlling the supply of money as the chief method of stabilizing the economy.), respectively.
Indeed, Alfred Nobel’s will of 1895, which established the eponymous (विशिष्ट व्यक्ति-विषयक) prizes in science, medicine, peace and literature, did not include economics. This prize was established in 1968 by Sweden’s central bank, and immediately lent the sheen (उज्ज्वलता/चमक) of an exact, falsifiable science to a discipline that has to grapple (सामना करना/निपटना) with human whim (सनक/इच्छा/ मरज़ी) and folly (मूढ़ता/मूर्खता) .
Indeed, Daniel Kahneman won the 2002 prize for a lifetime’s work on our cognitive biases, irrationality and herd behavior, far removed from the hyper-rational homo economicus. Hart and Holmstrom’s work can and have had practical uses.
It can determine, for example, under what conditions fixed or variable pay structures induce more efficiency; or in what circumstances privatization can help or harm social well-being. And given the massive inflation of CXO pay in recent years, we ought to pay heed (ध्यान/ ख्याल) to some of Holmstrom’s work that shows many ‘incentives’ might be unearned, or ill-targeted.
Perception (n)
The way in which something is regarded, understood, or interpreted. अभिज्ञता/समझ/बोध
Synonyms: Cognition, Thought, Sensibility, Comprehension
Example: His perception regarding economy was so weak that it took 15 days to understand the black market theory.
Bleak (ad)
Charmless and inhospitable; dreary. निराशाजनक/बेरंग/सूना
Synonyms: Colorless, Forlorn
Example: The current pattern of debt seems so bleak that it would be advantageous to invest in Equity funds.
Shrewdly (adv)
Intelligently or with cleverness. बुद्धिमानी से /चतुराई से
Synonyms: Intelligently, Cleverly, Artfully, Adroitly, Judiciously
Example: He was so glib with his words that he justified his arguments very shrewdly.
Esoteric (ad)
Intended for or likely to be understood by only a small number of people with a specialized knowledge or interest. गूढ़ /गुप्त
Synonyms: Cryptic, Hidden, Deep, Mystical
Example: Esoteric philosophical debates are less likely to be understood by common man.
Asymmetry (n)
Lack of equality or equivalence between parts or aspects of something; lack of symmetry. विषमता
Synonyms: Imbalance, Inequality, Skewness, Unevenness
Example: In warfare, asymmetry is where something very small can do a huge amount of damage.
Garnish (v)
Decorate or embellish. अलंकृत करना
Synonyms: Adorn, Ornament
Example: Garnish each serving with a dollop of sour cream.
Susceptible (ad)
Likely or liable to be influenced or harmed by a particular thing. संवेदनशील/आसानी से प्रभावित होने वाला
Synonyms: Sensitive, Vulnerable, Impressible
Example: Patients with liver disease may be susceptible to infection.
Unfettered (ad)
Not confined or restricted. निरंकुश/मुक्त
Synonyms: Free, Loose, Liberated, Allowed
Example: His imagination is unfettered by the laws of logic.
Sheen (n)
A soft luster or shine. उज्ज्वलता/चमक
Synonyms: Glaze, Luster, Gloss, Gleam
Example: Certain varieties of gold, notably some from Russia, possess a beautiful metallic sheen referable to the presence of either microscopic fissures or enclosures.
Grapple (v)
Engage in a close fight or struggle. सामना करना/निपटना
Synonyms: Confront, Clash, Face, Encounter
Example: Passers-by grappled with the man after the knife attack.
Whim (n)
A sudden desire or change of mind, especially one that is unusual or unexplained. सनक/इच्छा/ मरज़ी
Synonyms: Craze, Fancy, Sense, Desire
Example: She bought it on a whim.
Folly (n)
Lack of good sense; foolishness. मूढ़ता/मूर्खता
Synonyms: Stupidity, Foolishness, Absurdity, Silliness, Idiocy
Example: It was utter folly to choose batting first on this wicket.
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