i just wrapped up my first set of mid-terms at IIM Bangalore. I barely scraped through the three hectic days(six subjects)....had to make do with only 4 hours sleep in that time!! The results are not out yet but I am not worried. Its not because I have done exceedingly well, just that my studies have taught me a couple of things(at last!!) that serve as a balm for the losers and the depressed. So I decided to go ahead and share them here to ease the pain of others ;-)
Concept 1
Sunk Cost
I learnt this in micro-economics and it goes like this: sunk costs are costs that cannot be recovered once they have been incurred. Any future action will not take this cost into consideration. In English, this would mean that once we have done something we should not worry about it and it should not affect our future action. Drawing the corollary, just don't worry about anything you have done.Its sunk..its gone.( Economists have just stolen this from common sense, I guess.
(Check out this for more on Economists....http://www.youtube.comwatch?v=VVp8UGjECt4)
Concept 2
Hindsight and the Curse of Knowledge
You may not believe me but this is actually a concept, not in economics per se....But it finds application there. So I went ahead and included it under the head anyway. So here is how it goes....
Suppose I did not study for the exam. Before the exam I felt that my time would be best spent by watching a movie/ playing a game/ chatting up random girls ( things that would have made me happy then or what I thought was best for me then) . Now, If I fare poorly in the exam then I can console myself with the argument I had based my earlier decision without knowing that the paper was going to be tough. Based on the information that was available to me before the exam I had made a rational decision. So what I had done was right. So what am I crying about now if that is so??
For the more mathematically inclined, I am recalibrating prior probabilities on hindsight which I cannot do.
Really Cool Concept!
I guess If I fail at everything then I will turn to Economics . I have many such useless(read useful) pearls of wisdom in my bag which I can dole out to poor MBA students.
So go out and enjoy life...there is a perfectly good reason for you to do so now.
Concept 1
Sunk Cost
I learnt this in micro-economics and it goes like this: sunk costs are costs that cannot be recovered once they have been incurred. Any future action will not take this cost into consideration. In English, this would mean that once we have done something we should not worry about it and it should not affect our future action. Drawing the corollary, just don't worry about anything you have done.Its sunk..its gone.( Economists have just stolen this from common sense, I guess.
(Check out this for more on Economists....http://www.youtube.comwatch?v=VVp8UGjECt4)
Concept 2
Hindsight and the Curse of Knowledge
You may not believe me but this is actually a concept, not in economics per se....But it finds application there. So I went ahead and included it under the head anyway. So here is how it goes....
Suppose I did not study for the exam. Before the exam I felt that my time would be best spent by watching a movie/ playing a game/ chatting up random girls ( things that would have made me happy then or what I thought was best for me then) . Now, If I fare poorly in the exam then I can console myself with the argument I had based my earlier decision without knowing that the paper was going to be tough. Based on the information that was available to me before the exam I had made a rational decision. So what I had done was right. So what am I crying about now if that is so??
For the more mathematically inclined, I am recalibrating prior probabilities on hindsight which I cannot do.
Really Cool Concept!
I guess If I fail at everything then I will turn to Economics . I have many such useless(read useful) pearls of wisdom in my bag which I can dole out to poor MBA students.
So go out and enjoy life...there is a perfectly good reason for you to do so now.
2 comments:
hey..nice one..how come u missed some of the more juicier of eco lessons by none other than ur role model..! :)
dude, I love economics !! it just teaches you so much about life in general( read : reiterates the age old saying: "use common sense" )!!
Hope you're havin a good time in Bangalore !
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