Incentivizing Knowledge Transfers
Fuente:
arXiv
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| Autores principales: | , , |
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| Formato: | Preprint |
| Publicado: |
2025
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| Materias: | |
| Acceso en línea: | |
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| _version_ | 1866915709324361728 |
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| author | Kuang, Zhonghong Liu, Yi Wei, Dong |
| author_facet | Kuang, Zhonghong Liu, Yi Wei, Dong |
| contents | We study the optimal design of relational contracts that incentivize an expert to share specialized knowledge with a novice. While the expert fears that a more knowledgeable novice may later erode his future rents, a third-party principal is willing to allocate her resources to facilitate knowledge transfer. In the unique profit-maximizing contract between the principal and the expert, the expert is asked to train the novice as much as possible, for free, in the initial period; knowledge transfers then proceed gradually and perpetually, while the principal offers lump-sum compensations to the expert right after verifying each transfer; even in the long run, a complete knowledge transfer might not be attainable. Our analysis sheds light on the success of several prominent cross-border technology transfers that took place in China's auto industry and Korea's high-speed rail development. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2507_11018 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Incentivizing Knowledge Transfers Kuang, Zhonghong Liu, Yi Wei, Dong Theoretical Economics We study the optimal design of relational contracts that incentivize an expert to share specialized knowledge with a novice. While the expert fears that a more knowledgeable novice may later erode his future rents, a third-party principal is willing to allocate her resources to facilitate knowledge transfer. In the unique profit-maximizing contract between the principal and the expert, the expert is asked to train the novice as much as possible, for free, in the initial period; knowledge transfers then proceed gradually and perpetually, while the principal offers lump-sum compensations to the expert right after verifying each transfer; even in the long run, a complete knowledge transfer might not be attainable. Our analysis sheds light on the success of several prominent cross-border technology transfers that took place in China's auto industry and Korea's high-speed rail development. |
| title | Incentivizing Knowledge Transfers |
| topic | Theoretical Economics |
| url | https://arxiv.org/abs/2507.11018 |