Sunday, October 9, 2016

Connecting the dots

(1) Are the themes from one post that tie into other posts? if so, what are those connections?
I explore two main themes in my blog post, decision making and incentive. My first post was about Milton Friedman. Though he is known for his work on macroeconomics, I discussed one of his earlier papers written on decision making. In my second blog post I explored what affects one's decision to take an opportunistic act. In my third post, I discussed my experience of being on an effective team, and that it was effective because each member had the skill and incentive to make good decisions in volatile situations. The conclusion of these posts is that incentive seems to be the key to why one chooses one decision over the other. Self-preservation had a huge role in motivating the members of my team in the army. Calculation of the expected outcome was a main factor discussed in Milton Friedman's paper.
 
(2) Aside from addressing the prompt are there ways to connect what you wrote about to course themes? Were there connections that are more obvious to you now than at the time you wrote the post? if so, can you elaborate on that?

In the Illinibucks post, I discussed its implementation aspect. However, along with the excel homework, I realized that it addressed the topic of economics within an organization. Furthermore, it relates to the topic of how one should make decisions within an organization on price.

(3) Has your process for writing these posts evolved? Please explain how that has come about.

Although this is a blog, personal experiences can quickly go off topic or become unrelated to economics. As such, I started providing a frame for my posts. For some posts, I define the terms that will be discussed. For others, I try to read the textbook or an academic paper to see what others have already said about the topic. I also incorporated some data for my post on successful organizations. These three elements seem to provide a foundation on which I could analyze my experiences from an economic perspective.
(4) Now put yourself in the position of writing the prompt (this one or other prompts for future posts). What would you like to see? Can you give some reasons for that.

I would like to explore information asymmetry in detail, although we did discuss some of this during lecture in the context of trading companies in the past. In the modern age when communication is instantaneous, information asymmetry still exists in organizations. So my questions would be the following: What does a lower ranking employee miss that managers do not? What do managers miss that lower ranking employees do not? What kind of inefficiencies does this cause? How should it be improved?

I first experienced information asymmetry during my military service. When I was a private, I could not understand why so much individual freedom had to be taken away from soldiers. As I became promoted to a sergeant and squadron leader, I began to understand why some rules had to be in place. What is best for the team is not always best for the individuals. At the same time, I began to forget the troubles I had faced as a private, and how much impact certain rules had on my experience.










3 comments:

  1. You could do a better job making connections between posts. You didn't really discuss the issue with transaction costs and opportunistic behavior, which is at the heart of what we've been doing. You seem to be wrapped up in your own universe about the ideas of the course. I am not sure much of what we are doing is penetrating that.

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    1. I agree with that. We discuss a lot of things in class that makes sense at the time, but my mind doesn't seem to turn them into something concrete. A big reason might be that it's been two years since my last microecon class. Last Thursday, you told me that most of the things we talk about in class are formally discussed in the Milgrom and Roberts book. I ordered my own copy to go in depth.

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  2. I agree that incentives are a major theme throughout your blog posts, and also the blog posts of most people in the class. This commonality shows how important the issue of incentives and how they drive people is to economic analysis.

    I think it would be a good idea to further analyze situations in relation to information asymmetry in a future prompt, as it is highly related to organizational economics.

    It's good that you do your own research for your posts. I may try to read academic papers on the topic at hand to improve my own future posts.

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