With reference to A V Rajwade’s column, “The maths-economics duel” (November 10), as mathematics is an exact science with well-defined conditionalities, constraints and has universal applications, its usage amid imperfect conditions in economics could be questioned.
Economics is mostly about people making choices under given conditions. A choice derived from pure scientific methods is unexciting, has predictable outcomes and suffers from bounded rationality. An art-based choice employing creativity, inspiration, insight or intuition is thrilling and offers delight when successful; it teaches a great lesson when it fails.
However, making the choice between the two modes depends on contingent factors such as level of complexity of the situation, the number of alternatives to choose from and the stage of the process of choosing.
At the micro level, choices are essentially rational; they become complex not at the macro level — maths also cannot capture the right solution. At the process stage, creation of choices is more of an art (for example, brainstorming) and their evaluation a science.
However, the best economic concepts at strategic levels should have a blend of both — maths highlights the constraints limiting the choice; creative thinking transcends or bypasses them to come up with out-of-the-box solutions.
In the final analysis, intuitive thinking is responsible for landmark concepts or discoveries, even in science. Think of the law of gravity (insight about existence of a problem) or Archimedes’ principle (creativity in the bath tub). This is serendipity at its best.
Y G Chouksey, Pune
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