Agricultural Economics Forum, Bhutan

13/09/2026

Congratulations Dasho!
Wishing you great success in your new role and many achievements ahead!

Warmest Congratulations, Dr. Tashi Yangzome Dorji!

The Department of Agriculture extends its warmest congratulations to Dr. Tashi Yangzome Dorji on her appointment as the new Secretary of the Ministry of Agriculture and Livestock.

We are delighted to see you take on this new leadership role and are confident that your experience, expertise, and commitment will continue to contribute greatly to the advancement of Bhutan’s agriculture and livestock sectors.

As you take on this important responsibility, we look forward to your leadership, guidance, and support as we work together towards a more productive, resilient, and sustainable agriculture and livestock sector.

We wish Dasho every success in this new role and look forward to continuing to work closely with you in serving the nation and strengthening Bhutan’s agriculture and livestock sector.

Warmest congratulations, Dasho, on this well-deserved appointment!

31/08/2026

For interested researchers✌️

06/08/2026

The Sunk Cost Fallacy

The Sunk Cost Fallacy is a concept in behavioral economics that explains why people continue investing time, money, or effort in a decision simply because they have already invested a significant amount, even when continuing is unlikely🤥to produce the best outcome.

Why It Matters

The Sunk Cost Fallacy often leads people to:
* Continue failing projects.
* Hold onto losing investments.
* Spend more money trying to recover previous losses.
* Persist with ineffective strategies instead of adopting better alternatives.

Sound decision-making requires focusing on future outcomes, not on irrecoverable past costs.

Real-Life Examples
Business
* Continuing to invest in a product that consistently loses money because the company has already spent millions developing it.
* Keeping an unprofitable store open because of the large amount already invested in renovations.

Personal Life
* Staying in a boring movie because the ticket was expensive.
* Finishing a meal despite being full simply because you paid for it.
* Remaining in a course or career that no longer aligns with your goals because you have already spent several

Expanding a Failing Enterprise

A farmer has invested heavily in greenhouse vegetable production, but repeated losses occur due to poor market prices and high production costs. Instead of reassessing the business, the farmer borrows more money to expand, believing that previous investments must be recovered.

The Sunk Cost Fallacy teaches us an important principle:

Past costs are unrecoverable. Good decisions should be based on future costs, future benefits, and future opportunities, not on money, time, or effort that has already been spent.

Whether in farming, business, investing, or everyday life, recognizing the Sunk Cost Fallacy helps people make more rational, objective, and profitable decisions.

04/08/2026

Lemon Problem from the lens of Economic concept!
The Lemon Problem from the lens of economic concept explains how buyers and sellers having unequal information can lead to market failure.
Example
Imagine you want to buy a used car.
- The seller knows whether the car is in good condition or has serious problems.
- The buyer does not know the true condition of the car.
- Because of this uncertainty, the buyer offers a lower price.
- Owners of good-quality cars refuse to sell at that low price.
- As a result, mostly low-quality cars ("lemons") remain in the market.This is called the Lemon Problem.
Real-Life Applications
- Used car markets
- Online shopping
- Health insurance
- Job recruitment
- Second-hand electronics
The Lemon Problem shows how unequal information can reduce trust, lower market quality, and lead to market failure.

02/08/2026

The invisible Hand:
The Invisible Hand is an economic concept that explains how people pursuing their own self-interest can unintentionally benefit society through the free market.

The concept of the Invisible Hand was introduced by Adam Smith ,the father of modern economics, in his famous book The Wealth of Nations (1776).

🌾 Example

Imagine a farmer grows rice.

- The farmer grows rice to earn money, not to feed the whole country.
- He sells the rice in the market to make a profit.
- People buy the rice and get food.
- middleman earn income by selling it.
- Transport workers earn money by delivering it.

Although the farmer works for his own benefit, many other people also benefit from his actions.

02/08/2026

The Coase Theorem:
The Coase Theorem states that if property rights are clearly defined and transaction costs are zero (or very low), people can negotiate to solve externality problems efficiently, regardless of who initially owns the rights.
Simple Example
Imagine a factory creates noise that disturbs a nearby family.

- If the factory has the legal right to make noise, the family may pay the factory to reduce the noise.
- If the family has the legal right to peace and quiet, the factory may pay the family for permission to continue operating.

As long as both sides can negotiate easily and fairly, they can reach an agreement that benefits everyone.
This idea is known as the Coase Theorem.

🌍 Real-Life Applications

- Noise pollution
- Environmental disputes
- Land-use conflicts
- Water rights
- Property disputeAgricultural Economics Forum, Bhutan

29/07/2026

Economics: Nash Equilibrium is a situation in which each participant selects the best strategy based on the decisions of others. At this point, no player can improve their outcome by changing their strategy alone while the other players keep their strategies unchanged.

👨‍🌾 Example from Agriculture

Imagine two neighboring farmers in the temperate region of Bhutan deciding whether to cultivate potatoes or wheat during the summer growing season.

* If both farmers plant potatoes, the increased supply may reduce market prices, lowering profits for both.
* If one farmer plants potatoes while the other grows wheat, each benefits from selling different crops and faces less direct competition in the market.
* If both farmers plant wheat, the higher supply of wheat may also reduce its market price, decreasing their earnings.

Eventually, both farmers reach a point where neither can increase their profit by changing their crop choice alone while the other farmer continues with the same decision. This stable outcome is known as the Nash Equilibrium.

📚 Nash Equilibrium is one of the most important concepts in economics because it explains how people make rational decisions when the outcome of their choices depends on the decisions made by others.

29/11/2025

Today’s word is “crowding out effect”

19/11/2025

SANDEE invites concept notes in the areas of environmental and resource economics related to the development of South Asia and the HKH region. Of particular interest are concept notes that aligned with ICIMOD’s strategic focus areas and demonstrate a clear need or demand from policymakers for the ...

15/11/2025

Omitted bias?
As far as we understand, higher education becomes both an enabler and a motivator of outward migration. Ultimately, the underlying target is improved livelihood.

𝗚𝗲𝗻𝗱𝗲𝗿 𝗽𝗮𝘆 𝗴𝗮𝗽 𝗱𝗿𝗶𝘃𝗲𝘀 𝗕𝗵𝘂𝘁𝗮𝗻𝗲𝘀𝗲 𝘄𝗼𝗺𝗲𝗻 𝘁𝗼 𝗔𝘂𝘀𝘁𝗿𝗮𝗹𝗶𝗮: 𝗪𝗼𝗿𝗹𝗱 𝗕𝗮𝗻𝗸
Sherab Lhamo
A gender pay gap is one of the key factors driving Bhutanese women to migrate to Australia, according to the World Bank’s report, “Migration Dynamics in Bhutan: Recent Trends, Drivers, and Implications.”
https://kuenselonline.com/news/gender-pay-gap-drives-bhutanese-women-to-australia-world-bank