The crux of Economics is the Demand & Supply equation. Since decades, classrooms have been imparting Economics with the concepts of Demand & Supply being at the crux of it. After going through few really wonderful writings in Economics namely by Stephen Dubner & Steven Levitt, one will reach the stage of Economic self-actualization. With a fresh look at Economics & how it can be seen anywhere, anytime, lets explore its existence in our very own trains, The India Railway Trains.
Ask a regular traveler of any train, especially of the General class, you’ll know what it means to be in a train in India especially in those coming from or going on long journeys. The Station needs no criticism as enough has been told & expressed on it, same applies to our railway tracks & in macro-economic terms to the overall aggregate of the entire Indian Railway system.
Just then, something strikes the mind & an out-of-the box observation is done. The Indian train is a big-bazaar on wheel! All sorts of things, from a safety pin to delicious food items to toys & so much more are sold & purchased in this economy called “Trainomy”. With this, one important thing to point out is that all these economic transactions occur on the basis of the Law of Demand & the Law of Supply . An example of this is when a “paani ke pouch wala” sells a pouch for Re. 1 & the same is sold for Rs. 2 or even 3 when the Demand is high & supply limited, a clear cut 200% to 300% rise in price! If you wish to look at this event, go grab a ticket for “Memu passenger” train.
Now a days , due to inflation or to be precise “artificial inflation” of the onions, the quantity of bhel or chane ki dal with onion in a coach has reduced, prices remaining constant. One can illuminate upon so many such instances. Every choice, decision or activity has what Economists call negative externalities. The low-cost model of the General class coach attracts the daily travellers & those who wish to save few bucks. But it has its own negative effects such as increased risk of accidents, higher probability of conflicts as people travel in a congested manner & many more such effects. Maybe an HR Manager may enjoy here as he/she can use the HR skills of Conflict resolution.
Incentives are very important while talking on & about Economics. Especially the monetary incentives. In Freakonomics by Stephen & Steven, this fact is explained quite beautifully wherein the parents of children started coming much later than before when a nominal penalty was put on them for being late to pick up their children from school. With a minimal monetary amount as penalty they got an incentive of being relaxed, finish all the work & leisurely come to pick their children!
A running train exerts a few types of Markets. Some coaches are the Monopoly centres, some maybe Perfect markets. When we talk about the “chai”, it is generally a perfect market where an individual doesn’t exert any individual influence on the prices, so these are generally fixed & don’t change much, ever heard of chai being more than Rs. 5 per cup? Maybe once in a blue moon! The toy sellers are the most haphazard price-makers. Sometimes you’ll find a toy of a lesser amount & sometimes the same maybe of higher amount. It depends quite cleverly on the Class of the coach too, for eg. something maybe costlier in the First class & the same thing may be lower in the General or the Second class as its called. Sellers are very good in observing the monetary capacities of the prospective buyers.
All sort of Marketing gimmicks can be seen too. An ice-cream wala may constantly bet his product to be of the “best” quality, on looking at the cover one may never be able to locate the name of the producer of that ice-cream! Still people buy them up & enjoy every bit of it. When it comes to those who get money by singing, they have a lot of understanding for each other & exert mutual agreement. One will never go or interfere in the coach in which the other is earning his living. Maybe these are the business ethics they follow.
The coolies are the smartest Economists on the Railway stations. They have a 2nd career running along with their traditional “weight-lifting” job. They sell tickets! And you might have purchased from them too! No, we aren’t talking about the tickets they sell when you’re on counter in a long que & your train is about to leave. This is the case in General coaches where a coolie has his people sitting on seats in the coach. While on station, they offer the travelers a seat for around Rs. 20 or Rs. 30, here one ought to have a ticket issued from the ticket counter, the Men-in-Red know very well who’ll pay them 20 bucks & who 40 bucks. So they fluctuate the prices accordingly.
Many a times bargaining occurs too, where a buyer emphasizes lesser price than the quoted one, there are counter-quotes of price from the sellers & finally when an Equilibrium price is reached upon, both the parties agree & the buyer has the pleasure of sitting & traveling in an unreserved coach.
One can have many such examples based on his/her experience. The Indian trains are very good for someone & a hell for other. But it surely is a memory for everyone. Being quite a regular traveler especially of the General coaches, I’ve got to see the Raw India. People become friends very quickly, chat with each other, share so many “personal talks” with them just to realize that they are strangers who have met for some temporary moments & will move towards their own ways.
Our Railways may have been criticized on several thousand grounds but it definitely adds to ones experience. Good or Bad, memories are memories & they add value to us anyway. Being a novice Economist, I’ve tried to recollect some thoughts & observation from my limited experience in our trains. A more seasoned traveler would like to join the club of Trainomists & add to our understanding. Do express your views.
Ask a regular traveler of any train, especially of the General class, you’ll know what it means to be in a train in India especially in those coming from or going on long journeys. The Station needs no criticism as enough has been told & expressed on it, same applies to our railway tracks & in macro-economic terms to the overall aggregate of the entire Indian Railway system.
Just then, something strikes the mind & an out-of-the box observation is done. The Indian train is a big-bazaar on wheel! All sorts of things, from a safety pin to delicious food items to toys & so much more are sold & purchased in this economy called “Trainomy”. With this, one important thing to point out is that all these economic transactions occur on the basis of the Law of Demand & the Law of Supply . An example of this is when a “paani ke pouch wala” sells a pouch for Re. 1 & the same is sold for Rs. 2 or even 3 when the Demand is high & supply limited, a clear cut 200% to 300% rise in price! If you wish to look at this event, go grab a ticket for “Memu passenger” train.
Now a days , due to inflation or to be precise “artificial inflation” of the onions, the quantity of bhel or chane ki dal with onion in a coach has reduced, prices remaining constant. One can illuminate upon so many such instances. Every choice, decision or activity has what Economists call negative externalities. The low-cost model of the General class coach attracts the daily travellers & those who wish to save few bucks. But it has its own negative effects such as increased risk of accidents, higher probability of conflicts as people travel in a congested manner & many more such effects. Maybe an HR Manager may enjoy here as he/she can use the HR skills of Conflict resolution.
Incentives are very important while talking on & about Economics. Especially the monetary incentives. In Freakonomics by Stephen & Steven, this fact is explained quite beautifully wherein the parents of children started coming much later than before when a nominal penalty was put on them for being late to pick up their children from school. With a minimal monetary amount as penalty they got an incentive of being relaxed, finish all the work & leisurely come to pick their children!
A running train exerts a few types of Markets. Some coaches are the Monopoly centres, some maybe Perfect markets. When we talk about the “chai”, it is generally a perfect market where an individual doesn’t exert any individual influence on the prices, so these are generally fixed & don’t change much, ever heard of chai being more than Rs. 5 per cup? Maybe once in a blue moon! The toy sellers are the most haphazard price-makers. Sometimes you’ll find a toy of a lesser amount & sometimes the same maybe of higher amount. It depends quite cleverly on the Class of the coach too, for eg. something maybe costlier in the First class & the same thing may be lower in the General or the Second class as its called. Sellers are very good in observing the monetary capacities of the prospective buyers.
All sort of Marketing gimmicks can be seen too. An ice-cream wala may constantly bet his product to be of the “best” quality, on looking at the cover one may never be able to locate the name of the producer of that ice-cream! Still people buy them up & enjoy every bit of it. When it comes to those who get money by singing, they have a lot of understanding for each other & exert mutual agreement. One will never go or interfere in the coach in which the other is earning his living. Maybe these are the business ethics they follow.
The coolies are the smartest Economists on the Railway stations. They have a 2nd career running along with their traditional “weight-lifting” job. They sell tickets! And you might have purchased from them too! No, we aren’t talking about the tickets they sell when you’re on counter in a long que & your train is about to leave. This is the case in General coaches where a coolie has his people sitting on seats in the coach. While on station, they offer the travelers a seat for around Rs. 20 or Rs. 30, here one ought to have a ticket issued from the ticket counter, the Men-in-Red know very well who’ll pay them 20 bucks & who 40 bucks. So they fluctuate the prices accordingly.
Many a times bargaining occurs too, where a buyer emphasizes lesser price than the quoted one, there are counter-quotes of price from the sellers & finally when an Equilibrium price is reached upon, both the parties agree & the buyer has the pleasure of sitting & traveling in an unreserved coach.
One can have many such examples based on his/her experience. The Indian trains are very good for someone & a hell for other. But it surely is a memory for everyone. Being quite a regular traveler especially of the General coaches, I’ve got to see the Raw India. People become friends very quickly, chat with each other, share so many “personal talks” with them just to realize that they are strangers who have met for some temporary moments & will move towards their own ways.
Our Railways may have been criticized on several thousand grounds but it definitely adds to ones experience. Good or Bad, memories are memories & they add value to us anyway. Being a novice Economist, I’ve tried to recollect some thoughts & observation from my limited experience in our trains. A more seasoned traveler would like to join the club of Trainomists & add to our understanding. Do express your views.
