Learning by Observation within the Firm

Jayasri Dutta () and Kislaya Prasad

No 1993026, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: This paper studies the effects of learning by observation on the production and wage decisions of a firm . Workers can improve their productivity by observing others within the firm. The firm chooses a wage profile, which determines the amount of research done within the firm. Some workers may choose to free ride on the research of others. We examine whether the firm will have increasing returns to scale in production. It turns out that the production function either satisfies the efficiency wage hypothesis, or has increasing returns to scale. The objectives of the firm determine which of the two regions its production schedule lies in.

JEL-codes: D2 (search for similar items in EconPapers)
Date: 1993-06-01
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Related works:
Journal Article: Learning by observation within the firm (1996)
Working Paper: Learning by observation within the firm (1996)
Working Paper: Learning by Observation within the Firm (1993)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:1993026

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