Knowledge spillovers in cities: An auction approach

Abstract

This paper proposes a micro-foundation for knowledge spillovers. I model a city in which free knowledge transfers are bids by experts to entrepreneurs who auction jobs. These knowledge bids resemble a consultant's pitch to a potential client. Two fundamental properties of knowledge underlie the model: First, it is often necessary to reveal some knowledge to demonstrate its value. Second, knowledge is freely reproducible. Larger cities generate more meetings between experts and entrepreneurs, resulting in more learning and better matches. Larger cities also foster competition for jobs, which motivates experts to raise their knowledge bids. These results demonstrate how competitive behavior can be a source of agglomeration economies, and contribute to explain the higher productivity of urban workers.

Role of Human Resource Practices in Knowledge Spillover: Study of Knowledge Hubs

“…These interactions serve as the pillars of knowledge spillovers in an organization. When employee interacts then ideas exchange which outbid new roots of knowledge by diffusing old knowledge (Couture, 2015). In the corporate sector, when employees switch the job, they also inherit the learned knowledge and experience, and firms suffer the investment cost of their training.…”

“…Recruitment and selection considered as the pertinent source of knowledge spillover. When organizations conduct interviews they acquire situational questions during interview process from candidates (Couture, 2015). In this process, ideas exchanged that drives knowledge spillovers within firm.…”

Household location in English cities

“…Less work has considered how amenities within a given city matter for residential sorting. 2 Exceptions include Rosenthal and Ross (2015) and Couture (2015) who consider amenities across neighbourhoods and Handbury (2013) who studies variation across different groups of individuals.…”

Tarnishing the golden and empire states: Land-use restrictions and the U.S. economic slowdown

“…We note that their density externality approximately corresponds to an externality on labor productivity, which is similar to our specification. For microeconomic foundations for agglomeration and increasing returns at the regional level, seeDuranton and Puga [2004] andCouture [2015].…”