Alice Rivlin ECON 490 Fall 2019

Throughout the semester of learning and discussing economic concepts and models related to organizations, I had a better understanding of the structures, managing styles, and the reward and punishment system with respect to organizations in general. These concepts and knowledge indeed exist in our daily life, but I had never gotten the opportunity like this course to get to know the linkage between the abstract (overall) economic models and real life. For instance, in the gift exchange model, we are expecting two parties, such as the instructor and the students, to exchange reciprocal benefits with each other. This model can be applied to other circumstances as well, such as organizations. The employees complete tasks and bring profit to the organization, while the employer pays the employees by salaries as a reciprocity. Exchange occurs, so that everyone is getting something as making a contribution. To be more specific, connecting this model with my experiences, I now realize what I ...