Hierarchies and the Organization of Knowledge in Production

@article{Garicano2000HierarchiesAT,
  title={Hierarchies and the Organization of Knowledge in Production},
  author={Luis Garicano},
  journal={Journal of Political Economy},
  year={2000},
  volume={108},
  pages={874 - 904}
}
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… Expand

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