Relational Knowledge Transfers

Luis Garicano and Luis Rayo

No 11138, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: An expert with general knowledge trains a cash-constrained novice. Faster training increases the novice’s productivity and his ability to compensate the expert; it also shrinks the stock of knowledge yet to be transferred, reducing the expert’s ability to retain the novice. The pro…t-maximizing agreement is a multi-period apprenticeship in which knowledge is transferred gradually over time. The expert adopts a ¹/ₑ rule”whereby, at the beginning of the relationship, the novice is trained just enough to produce a fraction ¹/ₑ of the efficient output. This rule causes inefficiently lengthy relationships that grow longer the more patient the players. We discuss policy interventions.

Keywords: General human capital; International joint ventures; Relational contracts (search for similar items in EconPapers)
JEL-codes: D86 J24 L24 M53 (search for similar items in EconPapers)
Date: 2016-03
New Economics Papers: this item is included in nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Relational Knowledge Transfers (2017)
Working Paper: Relational knowledge transfers (2017)
Working Paper: Relational knowledge transfers (2016)
Working Paper: Relational knowledge transfers (2016)
Working Paper: Relational Knowledge Transfers (2013)
Working Paper: Relational Knowledge Transfers (2013)
Working Paper: Relational knowledge transfers (2013)
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