Dynamics of knowledge creation and transfer: The two person case |
| |
| Authors: | Marcus Berliant Masahisa Fujita |
| |
| Institution: | Department of Economics, Washington University, St. Louis, USA. Email:;Konan University, Kobe, Japan. |
| |
| Abstract: | This paper presents a micro-model of knowledge creation and transfer for a couple. Heterogeneity of people in their state of knowledge is essential for successful cooperation in the joint creation of new ideas. However, 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. The equilibrium process tends to result in the accumulation of too much knowledge in common compared to the most productive state. Equilibrium paths are found analytically, and they are a discontinuous function of initial heterogeneity. |
| |
| Keywords: | knowledge creation knowledge transfer knowledge externalities endogenous agent heterogeneity |
|
|
