Abstract

http://ssrn.com/abstract=241055
 
 

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Hierarchies and the Organization of Knowledge in Production


Luis Garicano


University of Chicago - Booth School of Business - Economics; Centre for Economic Policy Research (CEPR)


Journal of Political Economy, Vol. 108, No. 5, October 2000

Abstract:     
This paper studies how communication allows for the specialized acquisition of knowledge. It shows that a knowledge-based hierarchy is a natural way to organize the acquisition of knowledge when matching problems with those who know how to solve them is costly. In such an organization, production workers acquire knowledge about the most common or easiest problems confronted, and specialized problem solvers deal with the more exceptional or harder problems. The paper shows that the model is consistent with stylized facts in the theory of organizations and uses it to analyze the impact of changes in production and information technology on organizational design.

Number of Pages in PDF File: 31

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Date posted: September 14, 2000  

Suggested Citation

Garicano, Luis, Hierarchies and the Organization of Knowledge in Production. Journal of Political Economy, Vol. 108, No. 5, October 2000. Available at SSRN: http://ssrn.com/abstract=241055 or http://dx.doi.org/10.2139/ssrn.241055

Contact Information

Luis Garicano (Contact Author)
University of Chicago - Booth School of Business - Economics ( email )
Graduate School of Business
1101 East 58th Street
Chicago, IL 60637
United States
773-834-2862 (Phone)
773-702-0458 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
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References:  25
Citations:  136
Footnotes:  13

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