We use an economic model to study the optimal management of know-how, defined here as employee-generated information about the performance of specific methods or solutions to problems that may or will recur in the future. We derive three main results. First, information about successes is...

This paper develops a theory of the firm in which a firm's centralized asset ownership and low-powered incentives give a manager 'interpersonal authority' over employees (in a world with differing priors). The paper derives such interpersonal authority as an equilibrium phenomenon. One key...