South Asian Journal of Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Odds of Success of the Odd-Even Rule


Affiliations
1 Family Managed Business, S.P. Jain Institute of Management & Research (SPJIMR), Bhavan’s College Campus, Munshi Nagar, Dadabhai Road, Andher (West), Mumbai-400058, India
     

   Subscribe/Renew Journal


On December 25, 2015, Arvind Kejriwal, the Chief Minister of Delhi—India’s capital and the most polluted city in the world in 2014—announced the implementation of the Odd-Even Rule in Delhi, effective January 1, 2016. Aimed at restricting vehicular traffic on Delhi’s roads, and thereby easing congestion and reducing air pollution, the rule was applicable to all private four wheelers plying on Delhi’s roads, based on their license plate numbers. This case analyzes the odds of success of the odd-even rule using principles of Behavioral economics, and weighs such solutions against price rationing solutions ischolar_mained in neoclassical economics. The case would to help understand the generic question: what challenges do governments face in providing public goods and how can behavioral economics provide solutions to complex issues in public policy space?

Keywords

Air Pollution, Behavioral Principles, Delhi (India), Loss Aversion, Odd-Even Rule.
User
Subscription Login to verify subscription
Notifications
Font Size

  • AAP announces it will form government in Delhi. (2013, December 23). The Times of India. Retrieved from http://timesofindia.indiatimes.com/assemblyelections2013/delhi-assembly-elections/AAP-announces-it-will-form-government-in-Delhi/articleshow/27778821.cms

  • AAP storms to power inDelhi, wins 67 of the 70 seats. (2015, February 11). Business Standard. Retrieved from http://www.business-standard.com/article/elections/aap-storms-to-power-in-delhi-wins-67-to-70-seats-115021001563_1.html

  • AAP to form governmentin Delhi with Congress support. (2013, December 23). The Hindu Business Line. Retrieved from http://www.thehindubusinessline.com/news/aap-to-form-govt-in-delhi-with-congress-support/article5492502.ece

  • AAP won 28 seats, but came second in another 20. (2013, December 9). Firstpost. Retrieved from http://www.firstpost.com/politics/aap-won-28-seats-but-came-second-in-another-20-1277017.html

  • Adak, B. (2016, April 25). Delhi on top of air pollution list according to WHO report. Mail Today. Retrieved from http://indiatoday.intoday.in/story/delhi-on-top-of-air-pollution-list-according-to-who-report/1/650633.html

  • Aggarwal, M. (2015, April 29). NGT bans burning of waste in Delhi NCR. Live Mint. Retrieved from http://www.livemint.com/Politics/1tQ1qQlR4qKexXG3IFdsGP/NGT-bans-burning-of-waste-in-Delhi-NCR.html

  • Air pollution in Delhi: Delhi High Court notice to government, other agencies. (2015, February 9). Economic Times. Retrieved from http://articles.economictimes.indiatimes.com/2015-02-09/news/58967754_1_air-pollution-delhi-high-court-environment-pollution

  • Ali, M., Kant, V., AMP & Ashok, S. (2014, February 14). Arvind Kejriwal quits over Jan Lokpal. The Hindu. Retrieved from http://www.thehindu.com/news/cities/Delhi/arvind-kejriwal-quits-over-janlokpal/article5688528.ece

  • Anand, J. and Sriram, J. (2015, February 26). AAP slashes power tariff by 50 p.c., to provide free water. The Hindu. Retrieved from http://www.thehindu.com/news/cities/Delhi/power-tariff-up-to-400-units -cut-by-50-per-cent-in-delhi/article6933041.ece

  • Anuja. (2012, November 26). Kejriwal formally launches Aam Aadmi Party. Live Mint. Retrieved from http://www.livemint.com/Politics/d18Q5xXNM8KELeFXS1RorK/Kejriwal-formally-launches-Aam-Aadmi-Party.html

  • Anumeha. (2015, April-June). Deteriorating air quality: A study of Delhi. Common Cause. Retrieved from http://www.commoncause.in/publication_details.php?id=33

  • Ariely, D. (n.d.). Tag: The Endowment Effect. Retrieved from http://danariely.com/tag/the-endowment-effect/

  • As it happened: Arvind Kejriwal sworn in as Delhi Chief Minister (2015, February 14). The Hindu. Retrieved from http://www.thehindu.com/news/cities/Delhi/live-arvind-kejriwal-aap-cabinet-swearingin-ceremony/article6895003.ece

  • Behavioraleconomics.com. (n.d.). Loss aversion. Retrieved from https://www.behavioraleconomics.com/mini-encyclopedia-of-be/loss-aversion/

  • Behaviorlab.org. (n.d.). Hyperbolic discounting. Retrieved from http://www.behaviorlab.org/Papers/Hyperbolic.pdf

  • Bhattacharya, S. (2015, December 28). Delhi’s odd-even driving plan: The rules. Wall Street Journal. Retrieved from http://blogs.wsj.com/indiarealtime/2015/12/28/delhis-odd-even-driving-plan-what-to-know/

  • Biswas, S. (2015, December 8). What is Delhi’s new odd-even vehicle rule all about? Where did it come from?” India Today. Retrieved from http:// indiatoday.intoday.in/story/delhi-odd-even-vehicle-rule-arvind-kejriwal-aap-government-air-pollution/1/541371.html

  • Central Pollution Control Board (CPCB). (2016). Assessment of impact of oddeven scheme on air quality of Delhi. New Delhi, India: Author. Retrieved from http://cpcbenvis.nic.in/pdf/CPCB%20Report%20on%20Odd-Even%20Scheme.pdf

  • Chetty, R. (2015). Behavioral economics and public policy: A pragmatic perspective. The American Economic Review, 105(5), 1-33

  • Cropper, M. L., Simon, N. B., Alberini, A., Arora, S., & Sharma, P. K. (1997). The health benefits of air pollution control in Delhi. American Journal of Agricultural Economics, 79(5), 1625-1629.

  • Debu, C. (2015, July 22). Analyzing the demand for full statehood for Delhi. MapsofIndia. Retrieved from http://www.mapsofindia.com/my-india/politics/analyzing-the-demand-for-full-statehood-for-delhi

  • Delhi, Bully. (2015, May 11), The Hindu. Retrieved from http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/delhi-bully/article7191775.ece

  • Delhi capital. (n.d.). Retrieved from http://www.delhicapital.com/about-delhi/.

  • Delhi HC wants action plan to tackle polluted air in city and courts. (2015, April 24). Retrieved from http://www.legallyindia.com/Bar-Bench-Litigation/delhi-hc-wants-action-plan-to-tackle-polluted-air-in-city-courts

  • Delhi will restrict cars from Jan 1 to cut pollution, may face challenge (2015, December 29). Hindustan Times. Retrieved from http://www.hindustantimes.com/delhi/delhi-vehicles-with-odd-even-number-plates-to-ply-on-alternate-days/story-Cr9i3ERsnsTJVP8ikdDm6N.html

  • Elections.in. (n.d.). Aam Aadmi Party. Retrieved from http://www.elections.in/political-partiesin-india/aam-aadmi-party.html

  • Ghosal, A., Janwalkar, M. and Chatterjee, P. (2015, April 3). While you are sleeping: 80,000 trucks enter Delhi every night, poison on wheels. Indian Express. Retrieved from http://indianexpress.com/article/india/india-others/while-you-are-sleeping-80000-trucks-enter-delhi-every-night-poison-on-wheels/

  • Government of India. Ministry of Environment and Forests. (1997). White paper on pollution in Delhi. With an Action Plan, New Delhi, India: Author. Retrieved from http://www.moef.nic.in/divisions/cpoll/delpolln.html

  • Government of India. Ministry of Home Affairs (MHA). (2011). Census of India. Retrieved from http://censusindia.gov.in

  • Government of NCT of Delhi. Department of Transport. (n.d.). Pollution control. New Delhi, India: Author. Retrieved from http://delhigovt.nic.in/newdelhi/dept/transport/tr2.asp

  • How Beijing responded to its odd-even rule. (2016, January 1). The Times of India. Retrieved from http://timesofindia.indiatimes.com/india/How-Beijing-responded-to-its-odd-even-rule/articleshow/50404751.cms

  • How other countries are experimenting with odd-even system (2015, December 31). Retrieved from http://www.downtoearth.org.in/news/how-other-countries-areexperimentingwith-odd-even-system-52261

  • How will Delhi’s ‘odd-even’ car rationing work? (2015, December 31). BBC. Retrieved from http://www.bbc.com/news/world-asia-india-35198605

  • Huang, Z., & Huang, E. (2015, December 15). Dear Delhi: Here’s how to cope with odd-even. Love, Beijing. Quartz India. Retrieved from http://qz.com/574046/dear-delhi-heres-how-to-cope-with-odd-even-love-beijing/

  • Iyengar, R. (2014, November, 27). New Delhi, the world’s most polluted city, is even more polluted than we realized. Time. Retrieved fromhttp://time.com/3608534/india-new-delhi-worlds-most-polluted-city/

  • Jain, B. (2014, February 17). President’s rule imposed in Delhi. The Times of India. Retrieved from http://timesofindia.indiatimes.com/city/delhi/Presidents-rule-imposed-in-Delhi/articleshow/30558345.cms

  • Jayakumar, T. (2016, January 5). Evening out the odds. The Hindu Business Line. Retrieved from http://www.thehindubusinessline.com/opinion/evening-out-the-odds/article8069283.ece

  • Joshi, M. (2016, February 14). One year of AAP in Delhi: Kejriwal takes baby steps, has miles to go. Hindustan Times. Retrieved from http:// www.hindustantimes.com/delhi/one-year-of-aap-in-delhi-kejriwal-takes-baby-steps-has-miles-to-go/story-72hTkOcf3A1ucguhzaKrTL.html

  • Kahneman, D. (2011). Thinking, fast and slow. New York, NY: Farrar, Strauss and Giroux.

  • Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Economic Society, 47(2), 263-291.

  • Kaur, S. (2016, April 14). Odd-even rule: If objective is to mitigate pollution, idea is flawed. The Financial Express. Retrieved from http:// www.financialexpress.com/fe-columnist/at-odds-with-odd-even-scheme-in-delhi-and-possible-lessons/236345/?gclid=CL_9M2Lu88CFVAWaAodcPIALg

  • Khanna, P., & Mehta, N. (2016, January 16). Odd –even rule ends in Delhi, effects on air quality unclear. Live Mint. Retrieved from http://www.livemint.com/Politics/lhm0PbZRp4BMTRaOkG3L9N/Oddeven-rule-ends-in-Delhi-verdict-on-air-quality-unclear.html

  • Living in Delhi like living in a gas chamber: High Court (2015, December 3). The Times of India. Retrieved from http://timesofindia.indiatimes.com/city/delhi/LivinginDelhi-like-living-in-a-gas-chamber-HC/articleshow/50031355.cms; http:// www.firstpost.com/india/living-in-delhi-like-living-in-a-gas-chamber-high-court-2532178.html

  • Mittal, P. (2015, December 9). Delhi HC adjourns plea challenging Odd-Even scheme. Live Mint. Retrieved from http://www.livemint.com/Politics/ Y71wkSahjtjIXJWs7nvIoM/Delhi-HC-refuses-to-pass-interim-order-on-PIL-against-oddev.html

  • NGT Restricts Construction Work (2015, April 8). The Times of India. Retrieved from http://timesofindia.indiatimes.com/city/delhi/NGT-restricts-construction-work/ articleshow/46844036.cms

  • Odd-even rule second phase to be implemented from April 15 to 30 (2016, February 11). DNA. Retrieved from http://www.dnaindia.com/india/report-odd-even-rule-second-phase-to-be-implemented-from-april-15-to-30-2176587

  • Pindyck, R. S., Rubinfeld, D. L., & Mehta, P. L. (2012). Microeconomics (7th ed.). NOIDA India: Pearson Education.

  • Rispo, V. (n.d.). The power of “Framing effects” and other cognitive biases. Retrieved from http://www.adsavvy.org/the-power-of-framing-effects-and-other-cognitive-biases/

  • Rizwan, S. A., Nongkynrih, B., & Gupta, S. K. (2013). Air Pollution in Delhi: Its magnitude and effects on health. Indian Journal of Community Medicine, 38(1), 4-8.

  • Roychoudhury, S. (2014, December 5). Thirteen of the 20 most polluted cities in the world are Indian. Scroll.in. Retrieved from https://scroll.in/article/693116/thirteen-of-the-20-most-polluted-cities-in-the-world-are-indian

  • Samson, A. (n.d.). An introduction to Behavioral Economics. Retrieved from https://www.behavioraleconomics.com/introduction-to-be/

  • Sharma, R. (2015, December 29). Everything you need to know about Delhi’s odd-even rule. Gizmodo India. Retrieved from http://www.gizmodo.in/indiamodo/Everything-You-NeedTo-Know-About-Delhis-Odd-Even-Rule/articleshow/50364979.cms

  • Singh, A. (2016, August 2). Decoding Delhi’s demand for full statehood. The Wire. Retrieved from http://thewire.in/58286/decoding-delhi-demand-for-full-statehood/

  • Singh, K. P. (2015, April 7). On short fuse: Delhi reported rage case every 4th day. Hindustan Times (Delhi). Retrieved from https://www.pressreader.com/india/hindustan-times-delhi/20150407/281621008850603

  • Singh, S. R. (2015, December 4). Pollution up seven-fold in city since October 1: CSE. Hindustan Times. Retrieved from http://www.hindustantimes.com/delhi-news/pollution-up- seven-fold-in-city- since -october-1-cse/story-2juleD7sixKXFJHTFQ8E0N.html

  • Single factor cannot reduce pollution: Centre on Delhi’s odd-even scheme. (2016, March 15). NDTV. Retrieved from http://www.ndtv.com/india-news/single-factor-cannot-reduce-pollution-centre-on-delhis-odd-even-scheme-1287401

  • Soman, D. (2015). The last mile: Creating social and economic value from behavioral insights. Toronto, ON: Rotman-University of Toronto Press (UTP) Publishing.

  • Stewart, E. (2008, August 7). IOC praises efforts to reduce air pollution in China. The Guardian. Retrieved from https://www.theguardian.com/world/2008/aug/07/china.olympics2008

  • 13 out of 20 most polluted cities in world are from India (2015, December 4). India TV News. Retrieved from http://www.indiatvnews.com/news/india/13-outof20-most-polluted-cities-in-world-are-from-india-54104.html

  • 3 days after Diwali, Delhi air quality dips to record low (2016, November 2). NDTV. Retrieved from http://www.ndtv.com/delhi-news/3-days-after-diwali-delhi-air-quality-dips-to-record-low-1620673

  • U. S. Department of State. (n.d.). Group Report - Group PM2.5. Retrieved from http://photos.state.gov/libraries/india/231771/PDFs/jan-dec_2015.pdf

  • Wilkinson, N., & Klaes, M. (2012). An introduction to behavioral economics (2nded.). Basingstoke, UK: Palgrave Macmillan.


Abstract Views: 132

PDF Views: 0




  • Odds of Success of the Odd-Even Rule

Abstract Views: 132  |  PDF Views: 0

Authors

Tulsi Jayakumar
Family Managed Business, S.P. Jain Institute of Management & Research (SPJIMR), Bhavan’s College Campus, Munshi Nagar, Dadabhai Road, Andher (West), Mumbai-400058, India

Abstract


On December 25, 2015, Arvind Kejriwal, the Chief Minister of Delhi—India’s capital and the most polluted city in the world in 2014—announced the implementation of the Odd-Even Rule in Delhi, effective January 1, 2016. Aimed at restricting vehicular traffic on Delhi’s roads, and thereby easing congestion and reducing air pollution, the rule was applicable to all private four wheelers plying on Delhi’s roads, based on their license plate numbers. This case analyzes the odds of success of the odd-even rule using principles of Behavioral economics, and weighs such solutions against price rationing solutions ischolar_mained in neoclassical economics. The case would to help understand the generic question: what challenges do governments face in providing public goods and how can behavioral economics provide solutions to complex issues in public policy space?

Keywords


Air Pollution, Behavioral Principles, Delhi (India), Loss Aversion, Odd-Even Rule.

References