Core quants and desk quants on main street

The more perceptive of you might have realised that I’m in the job market.

Over the last one month, my search has mostly be “breadth first” (lots of exploratory conversations with lots of companies), and I’m only now starting to “go deep” into some of them. As part of this process, I need to send out a pitch to a company I’ve been in conversation with regarding what I can do for them.

So I’ve been thinking of how to craft my mandate while keeping in mind that they have an existing data science team. And while I was thinking about this problem, I realised that I can model it like how investment banks (at least one that I worked for) do – in terms of “core quants” and “desk quants”.

I have written about this on my blog before – most “data scientists” in industry are equivalent to what investment banks call “core quants”. They are usually highly technically accomplished people; in many cases they are people who were on an academic path that they left to turn to industry. They do very well in “researchy” environments.

They’re great at running long-gestation-period assignments, working on well defined technical problems and expressing their ideas in code. In general, though (I know I’m massively generalising), they are not particularly close to the business and struggle to deal with the ambiguities that business throws at them from time to time.

What I had mentioned in my earlier post is that “main street” (the American word for “general industry”) lacks “desk quants”. In investment banks, desk quants are attached to trading desks and work significantly closer to the business. They may work less on firmwide or long term strategic projects, but their strength is in blending the models and the markets, and building and making simple tweaks to models so that they remain relevant to the business.

And this is the sort of role in which I’m planning to pitch myself – to all potential employers. That while I’m rather comfortable technically, and all sorts of different modelling techniques, I’m not “deep into tech” and like to work close to the markets. I realise that this analogy will be lost on most people, so I need to figure out a better way of marketing myself. Any ideas will be appreciated.

Over the last month or so I’ve been fairly liberal and using my network to get introductions and references. The one thing I’ve struggled with there is how they describe me as. Most people end up describing me as a “data scientist”, and I’m not sure that’s an accurate description of what I do. Then again, it’s my responsibility to help them figure out how best to describe me. And that’s another thing I’m struggling in. “Desk quant” doesn’t translate well.

Bangalore Book Festival

So today I made my way to Gayatri Vihar in the Palace Grounds to visit the Bangalore Book Festival, on its last day. It was interesting, though a bit crowded (what would you expect on the last day of an exhibition? and that too, when it’s a Sunday?). I didn’t buy much (just picked up two books) given the massive unread pile that lies at home. However, there was much scope for pertinent observations. Like I always do when I have a large number of unrelated pertinent observations, I’ll write this in bullet point form.

  • There were some 200 stalls. Actually, there might have been more. I didn’t keep count, despite the stalls having been numbered. Yeah, you can say that I wasn’t very observant.
  • All the major bookshops in Bangalore barring the multicity ones had set up shop there. I don’t really know what they were doing there. Or were they just trying to capture the market that only buys in fairs? Or did they set up stall there just to advertise themselves?
  • It seems like a lot of shops were trying to use the fair to get rid of inventory they wanted to discard. All they had to do was to stack all of this on one table and put a common price tag (say Rs. 50) on every book in that collection, and it was enough to draw insane crowds
  • One interesting stall at the fair had been set up by an online self-publishing company. I’ll probably check them out sometime next year when I might want to publish a blook. Seems like an interesting business model they’ve got. Print on demand!
  • I also met the guys at the fair. Once again, they were there for advertising themselves. Need to check them out sometime. Given the kind of books I buy, I think online is the best place to get long tail stuff.
  • There was an incredibly large number of islamic publishing houses at the fair! And have you guys seen the “want qur an? call 98xxxxxxxx for free copy” hoardings all over the city? Wonder why the Bajrang Dal doesn’t target those
  • There was large vernacular presence at the fair. I remember reading in the papers that there was a quota for Kannada publishers, but there was reasonable presence for other languages also, like Gult, Tam, Mellu, Hindi
  • A large number of stalls were ideology driven. Publishing houses attached to cults had set up stalls, probably to further the cause of their own cult. So there was an ISKCON stall, a Ramakrishna Mutt stall, a Ramana Maharshi stall, etc.
  • Attendance at most of these niche stalls was quite thin, as people mostly crowded the stalls being run by bookstores in order to hunt for bargains. Attendance was also mostly thin at publisher-run stalls, making me wonder why most of these people had bothered to come to the fair at all.
  • I saw one awesomely funny banner at the place. It was by “Dr Partha Bagchi, the world leader in stammering for last 20 years” or some such thing. Was too lazy to pull out my phone and click pic. But it was a masterpiece of a banner
  • Another interesting ideological publisher there was “Leftword books”. Their two sales reps were in kurtas and carrying jholas (ok I made the latter part up). And they were sellling all sorts of left-wing books. Wonder who funds them! And they were also selling posters of Che for 10 bucks each
  • I wonder what impact this fair will have on bookstores in Bangalore in the next few days. Or probably it was mostly the non-regular book buyers who did business at the fair and so the regulars will be back at their favourite shops tomorrow.

I bought two books. Vedam Jaishankar’s Casting A Spell: A history of Karnataka cricket (I got it at Rs. 200, as opposed to a list price of Rs 500) and Ravi Vasudevan’s “Making Meaning in Indian Cinema”.

Arranged Scissors 12 – Rejection Sharing Agreements

This is similar to the Klose-Podolski corollary to the Goalkeeper Theory. To refresh your memory, or to fresh it in case I haven’t mentioned this earlier, the Klose-Podolski corollary refers to a case of two close friends who decide to hit on the same person. The implicit understanding is that they don’t regard each other as rivals but blade together, and first get rid of all the other suitors before they engage in one last showdown so that the bladee picks one of them.

We came up with this corollary to the Goalkeeper Theory shortly after the 2006 Football World Cup, during which Klose and Podolki formed a cracking strike partnership for Germany. Later on, they were to play together for Bayerrn Munchen, but like most Klose-Podolski arrangements, they too ended up in bitterness with Poodolski (who scored the lesser number of goals among the two) publicly voicing his bitterness and finally transferring to his “native” Koln.

Now that the crazy digression is out of the way, let me get to the point. Today is the first day of Navaratri, and with the inauspicious “Mahalaya Paksha” having gotten out of the way, arranged scissors is back in full earnest. This also means that I re-enter the market, though I’m still yet to list myself (don’t plan to for a while at least. OTC is said to give superior valuations). And some casual conversation and some not-so-casual phone calls this morning, I have been thinking of the arranged marriage equivalent of the Klose-Podolski arrangement.

So basically, as part of this arrangements, two parties who are looking to hit the same side of the deal strike a deal to share “rejection information” with each other. “Rejection information” can be of the following two types:

  • Today I found out about this girl. She seems to be really good in most respects – good looking, rich, good family background, virgin and all that. But for some (usually random) reason, my son doesn’t want to marry her. Why don’t you try her for your son?
  • Today I found out about this girl. Talked to her, her parents, etc. Doesn’t seem like a good prospect at all. She is either ugly or too “forward” or her family background is bad. I think the chances of her getting along with your son is quite low. Don’t waste your time with her.

Note that both of this is extremely useful information, especially in an illiquid market. What is important here is the nature of people with whom you strike such agreements. The basic thing is that your correlation with them should neither be too low nor too high. Ideally, they should belong to the same/similar caste, should have a fairly similar family background, etc. but the boys shouldn’t be too similar. Yeah, I think that is a fair criterion – they should be as similar as possible in terms of “arranged criteria” but as different as possible in terms of “louvvu criteria”.

Basically if the correlation is too low, then you can’t really trust their judgment on counterparties. On the other hand, if the correlation is too high, then it is extremely likely that they turn out to be “rivals” and that if one party rejects a girl, it’s unlikely that the other party will like the girl. I supppose you get what I’m talking about.

One downside to such agreements that I can think of – it might cause bitterness later on in life, long after the goal has been scored. The feeling that “this guy married a girl that I rejected” or the other way round might come back to haunt you later on in life.

LinkedIn recos

LinkedIn in general is a useful site. It’s a good place to maintain an “online CV” and also track the careers of your peers and ex-peers and people you are interested in and people you are jealous of. If you are a headhunter, it is a good place to find heads to hunt, so that you can buzz them asking for their “current CTC; expected CTC; notice period” (that’s how most india-based headhunters work). It also helps you do “due diligence” (for a variety of reasons), and to even approximately figure out stuff like a person’s age, hometown, etc.

However, one thing that doesn’t make sense at all to me is the recommendations section. Point being that LinkedIn being a “formal” networking site, even a mildly negative sounding recommendation can cause much harm to a person’s career and so people don’t entertain them. Also, the formality of the site prevents one from writing cheesy recommendations – the thing that made orkut testimonials so much fun. And if you can’t be cheesy or be even mildly negative, you will be forced to write an extremely filtered recommendation.

Rhetorical question – have you ever seen a negative or even funny or even mildly unusual recommendation on LinkedIn? I haven’t, and I believe it’s for the reasons that I mentioned above. And if you think you are cool enough to write a nice recommendation for me, and that I’m cool enough to accept nice recommendations, I’m sure you and I have better places to bond than LinkedIn.

Anyway, so given that most recommendations on LinkedIn are filtered stuff, and are thus likely to be hiding much more than they reveal, isn’t it a wonder that people continue to write them, and ask for them? Isn’t it funny that “LinkedIn Experts” say that it’s an essential part of having a “good profile”? Isn’t it funny that some people will actually take these recommendations at face value?

I don’t really have an answer to this, and continue to be amazed that the market value for LinkedIn recommendations hasn’t plummetted. I must mention here that neither do I have any recommendations on LinkedIn nor have I written any. To those corporate whores who haven’t realized that LinkedIn Recommendations have no value, my sympathies.


Commenting on facebook, my junior from college Shrinivas recommends . Check it out for yourself. It seems like this cribbing about linkedin recommendations isn’t new. I realize I may be late, but then I’m latest.

Arranged Scissors 8: Culture fit with parents

That you are in the arranged marriage process means that your parents now have full veto power over whom you marry. Given that you don’t generally want them to veto someone whom you have liked, the most common protocol as I understand is for parents to evaluate the counterparty first, and the “candidate” to get only the people who have passed the parental filter. Then the “candidates” proceed, and maybe meet, and maybe talk, and maybe flirt and maybe decide to get married.

Hypothesis: The chance of your success in the arranged marriage market is directly proportional to the the culture fit that you have wtih your parents.

Explanation: Given that parents have veto power in the process, and given the general protocol that most people follow (which I have described in the first para above; however, it can be shown that this result is independent of the protocol), there are two levels of “culture fit” that an interested counterparty has to pass. First, she has to pass the candidate’s parents’ culture fit test. Only after she has passed the test does she come in contact with the candidate (in most cases, not literally).

Then, she will have to pass the candidate’s culture fit test. By the symmetry argument, there are two more such tests (girl’s parents’ filter for boy and girl’s filter for boy). And then in the arranged marriage setting, people tend to evaluate their “beegaru” (don’t think english has a nice phrase for this – basically kids’ parents-in-law). So you have the boy’s parents evaluating the girl’s parents for culture fit, and vice versa.

So right at the beginning, the arranged marriage process has six layers of culture fit. And even if all these tests are passed, one gets only to the level of the CMP. (given that very few filter down to this level, i suppose a lot of people put NED at this stage and settle for the CMP).

Without loss of generality, let us now ignore the process of boy’s parents evaluating girl’s parents and vice versa (the problem is complex enough without this). So there are basically four evaluations, made by two pairs of evaluators (let us consider parents as one entity – they might have difference in opinion between each other occasionally but to the world they display a united front). Now for each side it comes down to the correlation of expectations between the side’s pair of evaluators.

The higher the “culture fit” you possess with your parents, the higher the chance that you will agree with them with regard to a particular counterparty’s culture fit. And this chance of agreement about culture fit of counterparty is directly proportional to the chance of getting married through the arranged marriage process (basically this culture fit thing can be assumed to be independent of all other processes that go into the arranged marriage decision; so take out all of those and the relationship is linear). Hence proved.

Now what if you are very different from your parents? It is very unlikely that you will approve of anyone that they will approve of, and vice versa. In such a situation it is going to be very hard for you to find someone through the arranged marriage process, and you are well advised to look outside (of course the problem of convincing parents doesn’t go away, but their veto power does).

So the moral of the story is that you should enter the arranged marriage market only if you possess a reasonable degree of culture fit with your parents.

(i have this other theory that in every family, there is a knee-jerk generation – one whose “culture” is markedly different compared to that of its previous generation. and after each knee-jerk, cultural differences between this generation and the following few generations will be low. maybe i’ll elaborate on it some other time)

Arranged Scissors 1 – The Common Minimum Programme

Arranged Scissors 2

Arranged Scissors 3 – Due Diligence

Arranged Scissors 4 – Dear Cesare

Arranged Scissors 5 – Finding the Right Exchange

Arranged Scissors 6: Due Diligence Networks

Arranged Scissors 7: Foreign boys

Fighterization of food

One of the topics that I’d introduced on my blog not so long ago was “fighterization“. The funda was basically about how professions that are inherently stud are “fighterzied” so that a larger number of people can participate in it, and a larger number of people can be served. In the original post, I had written about how strategy consulting has completely changed based on fighterization.

After that, I pointed out about how processes are set – my hypothesis being that the “process” is something that some stud would have followed, and which some people liked because of which it became a process. And more recently, I wrote about the fighterization of Carnatic music, which is an exception to the general rule. Classical music has not been fighterized so as to enable more people to participate, or to serve a larger market. It has naturally evolved this way.

And even more recently, I had talked about how “stud instructions” (which are looser, and more ‘principles based’) are inherently different from “fighter instructions” (which are basically a set of rules). Ravi, in a comment on Mohit‘s google reader shared items, said it’s like rule-based versus principles-based regulation.

Today I was reading this Vir Sanghvi piece on Lucknowi cuisine, which among other things talks about the fact that it is pulao that is made in Lucknow, and now biryani; and about the general declining standards at the Taj Lucknow. However, the part that caught my eye, which has resulted in this post with an ultra-long introduction was this statement:

The secret of good Lucknowi cooking, he said, is not the recipe. It is the hand. A chef has to know when to add what and depending on the water, the quality of the meat etc, it’s never exactly the same process. A great chef will have the confidence to improvise and to extract the maximum flavour from the ingredients.

This basically states that high-end cooking is basically a stud process. That the top chefs are studs, and can adapt their cooking and methods and styles to the ingredients and the atmosphere in order to churn out the best possible product.You might notice that most good cooks are this way. There is some bit of randomness or flexibility in the process that allows them to give out a superior product. And a possible reason why they may not be willing to give out their recipes even if they are not worried about their copyright is that the process of cooking is a stud process, and is hence not easily explained.

Publishing recipes is the attempt at fighterization of cooking. Each step is laid down in stone. Each ingredient needs to be exactly measured (apart from salt which is usually “to taste”). Each part of the process needs to be followed properly in the correct order. And if you do everything perfectly,  you will get the perfect standardized product.

Confession time. I’ve been in Gurgaon for 8 months and have yet to go to Old Delhi to eat (maybe I should make amends this saturday. if you want to join me, or in fact lead me, leave a comment). The only choley-bhature that I’ve had has been at Haldiram’s. And however well they attempt to make it, all they can churn out is the standardized “perfect” product. The “magic” that is supposed to be there in the food of Old Delhi is nowhere to be seen.

Taking an example close to home, my mother’s cooking can be broadly classified into two. One is the stuff that she has learnt from watching her mother and sisters cook. And she is great at making all of these – Bisibelebhath and masala dosa being her trademark dishes (most guests usually ask her to make one of these whenever we invite them home for a meal). She has learnt to make these things by watching. By trying and erring. And putting her personal touch to it. And she makes them really well.

On the other hand, there are these things that she makes by looking at recipes published in Women’s Era. Usually she messes them up. When she doesn’t, it’s standardized fare. She has learnt to cook them by a fighter process. Though I must mention that the closer the “special dish” is to traditional Kannadiga cooking (which she specializes in), the better it turns out.

Another example close to home. My own cooking. Certain things I’ve learnt to make by watching my mother cook. Certain other things I’ve learnt from this cookbook that my parents wrote for me before I went to England four years ago. And the quality of the stuff that I make, the taste in either case, etc. is markedly different.

So much about food. Coming to work, my day job involves fighterization too. Stock trading is supposed to be a stud process. And by trying to implement algorithmic trading, my company is trying to fighterize it. The company is not willing to take any half-measures in fighterization, so it is recruiting the ultimate fighter of ’em all – the computer – and teaching it to trade.

Preliminary reading on studs and fighters theory:

Studs and Fighters

Extending the studs and fighters theory

Lazy post: Search Phrases: March 2009

I think I’ll make this a monthly feature: collecting the whackiest search terms that people use to land up on my blog, and posting them here. I had published one such list for February. Here goes the list for March:

  • describe my job
  • apprentics for carpenter in gurgaon
  • can north indians survive in the south
  • carnatic music pakistan
  • dry fish market in orisa & madrass contact numbers
  • examples of bastardization in a sentence
  • how can death be postponed by chanting mantras?
  • kodhi is a cheap guy
  • competition
  • verb phrases of the behavior of atticus
  • what are some other versions of dashavatar -film -songs -jobs -dvd -movie

Bangalore trip update

The recent inactivity on this blog was mainly due to my inability to log on to wordpress from my phone and write a post.  I had gone home to Bangalore for an extended weekend (taking Friday and Monday off) and the only source of net access there was my phone, and for some reason I wasn’t able to log on to NED from that. During the trip I had several brilliant insights and brilliant ideas and wanted to blog them and finally such NED happened that I didn’t even twitter them. Deathmax.

The main reason I went to Bangalore was to attend Pradeep (Paddy)’s reception. I think this is an appropriate time to share the funda of his nickname with the world. Before he joined our school in 9th standard, there was this guy two years senior called Pradeep, and for some reason not known to me he was nicknamed Paddy. I vaguely knew him since I used to play basketball with him, and after he graduated there were no more Paddys in school. So when this new guy came from the Gelf, it presented a good opportunity to get back a Paddy into school. It turned out to be such a sticky nickname that not even IIT could change it.

Friday was Ugadi – yet another reason to be home in Bangalore – and was mostly spent visiting relatives. When they heard about my impending market entry, all of them brought up stories of not-so-successful marriages of people they knew well, and put fundaes to me about avoiding certain pitfalls. These fundaes were liberally peppered with stories. Mostly sad ones. Mostly of people who have chosen to continue in their marriages despite them clearly failing. It is amazing about the kind of stuff people I know have gone through, and yet they choose to not run away.

Saturday morning was rexerved for my first ever “market visit”. I was taken to this bureau in Malleswaram and asked to inspect profiles. “There are profiles of hundreds of girls there”, my uncle had told me “so let us go there before ten o’clock so that you have enough time”. The profiles were mostly homogeneous. The number of engineering seats available in Karnataka amazes me. Every single profile I checked out over there had studied a BE, and was working in some IT company. Things were so homogeneous that (I hate to admit this) the only differentiator was looks. Unfortunately I ended up shortlisting none of them.

One of the guys I met during my Bangalore trip is a sales guy who lives in a small temple town without any access to good cinema. So he forced me to accompany him to watch Slumdog (in PVR Gold Class – such an irony) and Dev D. I agree that Slumdog shows India in poor light, but filter that out and it’s a really nice movie. We need to keep in mind that it was a story and not a documentary, and even if it were the latter, I think documentaries are allowed to have narratives and need not be objective. Dev D was simply mindblowing, apart from the end which is a little bit messed up. Somehow I thought that Kashyap wanted to do a little dedic to his unreleased Paanch.

There is this meet-up at Benjarong which is likely to contribute enough material to last six arranged scissors posts. I’ll probably elaborate about the discussions in forthcoming posts but I must mention here that several arranged marriage frameworks were discussed during the dinner. The discussions and frameworks were enough to make both Monkee and I, who are in the market process, and Kodhi who will enter the market shortly to completely give up in life.

One takeaway from Paddy’s reception is that if you can help it, try not to have a “split wedding” (and try not to have a split webbing also) – where different events are held at diferent venues, on disjoint dates. In that case you won’t have people lingering around, and you will lose out on the opportunity to interact with people. Note that there is zero scope for interation during the ceremonies, and the only time you get to talk to people is before, and after, and during. And it is important that there is enough before or after or during time to allow these interactions. In split weddings guests are likely to arrive and leave in the middle of an event and so you’ll hardly get to talk to them.

One policy decision I took was to not have breakfast at home during the length of my stay. I broke this on my last day there since I wouldn’t be having any other meal at home that day, but before that visited Adigas (ashoka pillar), SN (JP nagar) and UD (3rd block). The middle one was fantastic, the first reasonably good except for bad chutney and the last not good at all. Going back from Gurgaon it was amazing that I could have a full breakfast (2 idlis-vada-masala dosa-coffee) for less than 50 bucks. Delhi sorely lacks those kind of “middle class” places – you either eat on the roadside or in fine dining here.

Regular service on this blog should resume soon. My mom has stayed back in Bangalore for the summer so I’m alone here  and so have additoinal responsibilities such as cooking and cleaning. However, I think I should be having more time so might be writing more. I can’t promise anything since blog posts are generated by spur-of-the-moment thoughts and I never know when they occur. Speaking of which I should mention that I put elaborate fundaes on studs and fighters theory in my self-appraisal review form last week.

The Perils of Notes Dictation

Thinking about my history lessons in schools, one picture comes to mind readily. A dark Mallu lady (she taught us history in the formative years between 6th and 8th) looking down at her set of voluminous notes and dictating. And all of us furiously writing so as to not miss a word of what she said. For forty minutes this exercise would continue, and then the bell would ring. Hands weary with all the writing, we would put our notebooks in our bags and look forward to a hopefully less strenuous next “perriod”.

The impact of this kind of “teaching” on schoolchildren’s attitude towards history, and their collective fflocking to science in 11th standard is obvious. There are so many things that are so obviously wrong with this mode of “teaching”. I suppose I’ll save that for else-where. Right now, I’m trying to talk about the perils of note-making in itself.

Before sixth standard and history, in almost all courses we would be dictated “questions and answers”. The questions that would appear in the exam would typically be a subset of these Q&A dictated in class. In fact, I remember that some of the more enthu teachers would write out the stuff on the board rather htan just dictating. I’m still amazed how I used to fairly consistently top the class in those days of “database query” exams.

I’m thinking about this from the point of view of impact on language. Most people who taught me English in that school had fairly good command over the language, and could be trusted to teach us good English. However, I’m not sure if I can say the same about the quality of language of other teachers. All of them were conversant in English, yes, and my schoool was fairly strict about being “English-medium”. However, the quality of English, especially in terms of grammar and pronunciation, of a fair number of teachers left a lot to be desired.

I can still remember the odd image of me thinking “this is obviously grammatically incorrect” and then proceeding to jot down what the teacher said “in my own words“. I’m sure there were other classmates who did the same. However, I’m also sure that a large number of people in the class just accepted what the teacher said to be right, in terms of language that is.

What this process of “dictation of notes” did was that teachers with horrible accents, grammar, pronunciation or all of the above passed on their bad language skills to the unsuspecting students. All the possible good work that English teachers had done was undone.There is a chance that this bad pronunciation, grammar, etc. would have been passed on even if the teachers didn’t give notes – for the students would just blindly imitate what the teachers would say. However, the amount by which they copied different teachers would not then be weighted by the amount of notes that each teacher dictated, and I think a case can be made that the quality of a teacher is inversely proportional to the amount of notes he/she dictates.

Teachers will not change because dictation is the way that they have been taught to “teach”. The onus needs to go to schools to make sure that the teachers don’t pass on their annoying language habits to the students. And a good place to start would be to stop them from dictating notes. And I still don’t understand the value of writing down notes that you don’t really bother to understand when you have a number of reasonably good text books and guide books available in the market. I agree that for earlier classes, some amount of note-making might be necessary (I think even that can be dispensed with), but in that case the school needs to be mroe careful regarding the language skills of people it recruits in order to dictate these notes.

Arranged Scissors 5 – Finding the Right Exchange

If you look at my IIMB grade card, one subject stands out. It is one of the two Cs that I have on the card, and the other was in a “dead rubber” (5th/6th term where grades didn’t matter for placements). This C was in introductory marketing management. Where the major compoenent was a group project called the application exercise (ap-ex). I frequently crib that I did badly in that project because four out of six people in my group did no work, or even negative work (and this is true). Digging deeper, however, I think the more fundamental issue was that the two of us who worked didn’t really know what we were doing. We failed to understand the concept of STP till a few years after the project was over.

STP is one of the most fundamental concepts in marketing. It stands for Segmentation, Targeting and Positioning. I quickly appreciated Positioning, but took a long time in trying to figure out the difference between segmentation and targeting. In my defence, they are highly inter-related concepts, and unless you look at it from the point of view of social sciences (where each unique point fetches you one mark in the board exam) it is not intuitive that they are separate concepts.

So you segment the “population” based on various axes. Taking these axes in conjunction, you end up “segmenting” the population into a large number of hypercubes. Then you do the “targeting”. Find the set of hypercubes that you want to sell your product to (in the context this post is about, sell yourself to). And so once you have found your “target segment” or set of “target segments” you “position yourself” and go out to sell. And then you need to figure out the “4 Ps” of marketing. Product (fixed here – it’s you). Price (irrelevant if you don’t plan to take dowry). Forgot one P. The other is Place (where you will sell).

The arranged marriage market can be broadly be divided into two – OTC and exchanges. OTC (over the counter) is the case where you have a mutual acquaintance setting you up with a counterparty. The only difference here between arranged and normal scissors is that in the arranged case, it is your parents who are set up with the counterparty’s parents rather you getting set up directly. Since it is a mutual acquaintance doing the setting up, the counterparty is at max two degrees away, and this makes the due diligence process a lot easier. Also, you have one interested third party who will keep nudging you and pushing hte process back and forth and generally catalyzing it. So people in general prefer it. Historically, there were no formal exchanges (apart from say a few “well known village elders”). Most transactions were OTC.

One problem in financial OTC markets is counterparty risk (which is what has prompted the US government to prop up AIG) but this is not a unique problem with OTC arranged marriage market – counterparty risk will always be there irrespective of the method in which the relationship was formed. Apart from providing counterparty protection, one important role that financial exchanges play is to improve liquidity in the market. The number of transactions that happen in the exchange ensure that the market is efficient and prices are fair. Liquidity is an important asset in the arranged marriage exchanges also.

The problem that I’m trying to describe in this post is about segmenting the exchanges based on their most popular commodity types. I don’t have reall live examples of this, but then for each product you will want to go to a different exchange. For example (this example may not be factually correct) both the Chicago Board of Trade (CBoT) and Chicago Mercantile Exchange (CME) trade in both corn futures and cattle futures. However, the volume of corn futures that are traded on CBoT is significantly larger than the volume of corn futures traded on the CME. And the volume of cattle futures traded on the CME might be siginicantly larger than the corresponding volume in CBoT.

So if you want to buy cattle futures, you are better off going to the CME rather than the CBoT since the former has significantly greater liquidity in this product, and thus you are assured of getting a “fairer” price. Similarly, to buy corn you should rather go to CBoT than CME. I suppose you get the drift. Now, the same is true with the arranged marriage market also. If you want to get listed on an exchange, you will need to make sure that you get listed on the right exchange – the exchange where you are most likely to find people belonging to your target segment.

To take an example, if you think you want a Tamil-speaking spouse, you are significantly better off listing on rather than listing on, right? Of course this is just a simplistic example which I have presented because the segmentation and difference in markets is clear. Things in the real world are not so easy.

There are various kinds of marriage exchanges around. In fact, this has been a flourishing profession for a large number of years, and even the recent boom in louvvu marriages has done nothing to stem the flow of this market. You will have every swamiji in every mutt who will want to perform social service by opening a marriage exchange. Then, you have a few offline for-profit exchanges. Some of them work on a per-deal basis. Others charge you for listing, since it is tough for them to track the relationships that they’ve managed to create. Then, this is one business which has clearly survived the dotcom bust of 2001-02. The fact that this business is flourishing can be seen on the left sidebar of this page where I suppose a large number of them will be advertising. In fact, I encourage you to click through them since that will result in precious adsense revenue for me.

There is nothing wrong in carpet bombing, but that comes at a price. Notwithstanding the listing fees (which are usually nominal), you will have to deal with a significantly large number of “obviously misfit” CVs and bump them off. Especially if you live far away from the exchanges and have someone else broking for you, you don’t want to burden them too much, right? So the problem is in doing your segmentation and targeting. And then researching the exchanges to find which exchange has most liquidity for products belonging to both your segment as well as your target segment. And get listed on them ratehr than wasting precious time, energy and money listing on exchanges that are unlikely to be useful.

Since I began this (extremely long) post with marketing fundaes, I should complete it with some more (which is irrelevant to the rest of this post). A standard process for advertising is AIDA (Awareness-Interest-Desire-Action). Typically for a relationship to “happen”, you need a minimum of D from at least one of the parties, and a minimum of I from the other party. The normal arranged marriage process, however, assumes that an I-I is a sufficient condition for a sufficient lifelong relationship, and don’t give enough time and space for people to check if D is there. Hence the disasters. Hence the tilt towards the CMPs.

Arranged Scissors 1 – The Common Minimum Programme

Arranged Scissors 2

Arranged Scissors 3 – Due Diligence

Arranged Scissors 4 – Dear Cesare