Knowledge Creation as a Square Dance on the Hilbert Cube
Marcus Berliant and
Masahisa Fujita
Game Theory and Information from University Library of Munich, Germany
Abstract:
This paper presents a micro-model of knowledge creation through the interactions among a group of people. Our model incorporates two key aspects of the cooperative process of knowledge creation: (i) heterogeneity of people in their state of knowledge is essential for successful cooperation in the joint creation of new ideas, while (ii) the very process of cooperative knowledge creation affects the heterogeneity of people through the accumulation of knowledge in common. The model features myopic agents in a pure externality model of interaction. Surprisingly, in the general case for a large set of initial conditions we find that the equilibrium process of knowledge creation converges to the most productive state, where the population splits into smaller groups of optimal size; close interaction takes place within each group only. This optimal size is larger as the heterogeneity of knowledge is more important in the knowledge production process. Equilibrium paths are found analytically, and they are a discontinuous function of initial heterogeneity.
Keywords: knowledge creation; knowledge externalities; microfoundations of endogenous growth (search for similar items in EconPapers)
JEL-codes: D83 O31 R11 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2005-06-22, Revised 2005-09-26
New Economics Papers: this item is included in nep-geo
Note: Type of Document - pdf; pages: 64
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/game/papers/0506/0506006.pdf (application/pdf)
Related works:
Journal Article: KNOWLEDGE CREATION AS A SQUARE DANCE ON THE HILBERT CUBE (2008)
Working Paper: Knowledge creation as a square dance on the Hilbert cube (2007) 
Working Paper: Knowledge Creation as a Square Dance on the Hilbert Cube (2005) 
Working Paper: Knowledge Creation as a Square Dance on the Hilbert Cube (2004) 
Working Paper: Knowledge Creation as a Square Dance on the Hilbert Cube (2004) 
Working Paper: Knowledge Creation as a Square Dance on the Hilbert Cube (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpga:0506006
Access Statistics for this paper
More papers in Game Theory and Information from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).