South Asian Journal of Management

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Odds of Success of the Odd-Even Rule


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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
     

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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.
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  • Odds of Success of the Odd-Even Rule

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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