Bulbs Vs Fluoroscent Lights

I've never liked bulbs. I much prefer tube-lights (or other fluoroscent lights). I find bulbs far too dim and entirely unsuitable for task like reading or working on the computer.

Whats more, bulbs are inefficient as far as power consumption is concerned. Why then, does the US insist on using bulbs in almost all domestic settings? Its not like the nation can't afford fluoroscent lights (which is an important factor in developing countries like India).

Its amazing; my dorm shower and toilet have fluoroscent lights, but the 'interior designer' in all her infinite wisdom, has chosen to light all living areas with bulbs. The lighting in the toilet is far more suitable for reading than my study table. Sheeesh....

Some things I will never understand.

Investor Behaviour and Imperfect Markets

One of the courses that I'm taking this term (with the same title as above) explores cognitive limitations of human beings and how these can affect investing behaviour. The course is taught by Michael Schill and Ron Wilcox. We've performed some fascinating experiments 'live' in class that always have me nodding and thinking "yup - I do that too!".

For e.g. one of the things we talked about is Mental Accounting which is (apparently) a well-established area of research. We studied all kinds of interesting effects - like how people feel much happier if they win $5 once, $5 again and then $10 as a grand finale rather than winning $20 all at once.

A great example Prof. Wilcox gave was about those cheesy infomercials on late night TV that try to sell us a set of 6 "Ginsu-Knives" knives for $24.99. The presenter will first talk, at length, about how the knives (probably chepo imports) are the best thing since sliced bread and how they're really worth $5,000 but for a limited time only are being offered at a special price of 24.99. And then:

"But if you order in the next 20 minutes - we will include this magic wiper-duster-gizmo absolutely FREE!"

(and you're thinking, 'hey - this is cool. I get more stuff!')

"...and we will also include this looks-like-real-wood chopping board completely FREE!"

(now you're thinking - wow even more stuff!)

"...and last, but not least, we will also send you this booklet on 'How to cut onions without tears' by HoshiHoshi Kishimura absolutely FREE"

(...ok - you're reaching for the phone now)

In essence - studies show that once we're given the price (24.99) we've accounted for it and taken note of it as a negative experience we must undergo to buy the knives. But when we're shown each of the addional gains separately - it leads to an exaggerated belief about the attractiveness of the bargain. So for e.g. if the announcer had said all in one breath:

"Buy these knives, with a dusting cloth, fake wood block and paper pamphlet - for 24.99"

you'd probably think - 'this is crap'. But if they separate out the gains - it leads to the deal sounding more attractive.

It all appeared very credible & intuitive to me. It also reminded me of an interview I had seen once on TV. It was an interview of Gonzalo "Goni" Sanchez de Lozada, who is from Bolivia and had played a key role as finance minister in stopping hyperinflation in Bolivia in 1985. I reproduce part of his interview below (full interview text is available here):

"Every two or three days I would take it to the president to show how we'd advanced, and get his criteria.

And he would direct us with a great deal of wisdom, saying, "Look, boys, you've got one chance, and remember, as Machiavelli said, 'It's all the bad news at once, and the good news little by little.'"

My Humble Abode: 389 Dillard

I arrived in Charlottesville by train from New York (technically, a connecting bus brought me from Washington D.C. to Charlottesville, but it was all Amtrak).

Took a taxi from the station to Dillard. A single room had been already been assigned to me. And whats the first thing I notice while climbing up the stairs to me room? A sign (see right) that states:

"Graveyard Site: This area contains unmarked graves believed to be those of slaves of the Maury Family, owners of Piedmont in the Nineteenth Century".

Whoa!!! :-o

There aren't any conspicous graves in the woodland. The official version says that there are "faint depressions" in some places (I haven't gone and checked). Nevertheless, what reaction is poor Nirvana Bhai supposed to have when he sees such a sign right opposite his room? I guess most of all, I was intrigued. Intrigued by the fact that the spot I was standing on was a part of history. I was moderately freaked too - but when you think about it - what inhabited land doesen't contain a grave or two?

Having grown up in India I was never taught (and therefore know very little) about the details of slave trade and how it formed an integral part of american society in the 18th/19th century. What I do see is the fact that America continues to be a deeply segregated society. Of course, the US is not the only society in which segregation exists. Changing the law is certainly the first step, but is it sufficient? Will the course of time erase the scars left by history?

Perhaps racism is in-built into all of us? Perhaps there is an evolutionary basis for it? Pop-science books like Blink talk about this. I've also come across some papers by famous political scientist Bob Axelrod in the past that talk about how even the slightest amount of bias (specifically, preference for those who look like ourself) can lead to ghetto-isation. Does this mean integrated societies (like the Carribean?) will always be the exception rather than the rule?

Nirvana bhai does not have the answers. He only has qustions. But he does think this - recognising, understanding & accepting our cognitive limitations could help us in overcoming them.

Hmmm....wonder what habbu-habbu is up to right now...

Nirvana Bhai?

The choice of name is a bit random. But Nirvana Bhai seems as good as any (it seems to be inspired by sikh priest nomenclature). Does it fit? Not sure. Perhaps you have a suggestion?

This blog starts off as I move to Virginia to start a 5 month MBA Exchange Programme with Darden Business School, UVA. Might be a good way to stay in touch with friends, family, dog etc.

Will I be diligent in my blogging efforts? Will my blogs be lucid & inspiring? Only time will tell. Watch this space...