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Spatial Proximity and Complementarities in the Trading of Tacit Knowledge

  • Neslihan Aydogan

    (University of Maastricht)

  • Thomas P. Lyon

    (Kelley School of Business)

We model knowledge-trading coalitions in which the transfer of tacit knowledge is unverifiable and requires face-to-face contact, making spatial proximity important. When there are sufficient “complementarities” in knowledge exchange, successful exchange is facilitated if firms can meet in a central location,thereby economizing on travel costs. When complementarities are small,however, a central location may be undesirable because it is more vulnerable to cheating than a structure involving bilateral travel between firms. We believe that our framework may help explain the structure and stability of multimember technology trading coalitions such as Sematech and Silicon Valley.

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File URL: http://econwpa.repec.org/eps/mic/papers/0404/0404004.pdf
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Paper provided by EconWPA in its series Microeconomics with number 0404004.

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Length: 38 pages
Date of creation: 14 Apr 2004
Date of revision:
Handle: RePEc:wpa:wuwpmi:0404004
Note: Type of Document - pdf; pages: 38
Contact details of provider: Web page: http://econwpa.repec.org

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