Luis Garicano

ThinkersEconomist

Works

In Organizational Structures

Known for

Organizational economics of hierarchy and knowledge.

Ideas

Organizing for synergies. With Dessein and Gertner, a model of the hybrid of business units and central functions. Caveat: A formal model.

The knowledge-based hierarchy. Showed that, when matching problems with those who know how to solve them is costly, a knowledge-based hierarchy is a natural way to organize the acquisition of knowledge: production workers learn the most common or easiest problems, and specialized problem solvers deal with the more exceptional or harder ones. Caveat: A formal model, which the paper says is consistent with stylized facts and uses to analyze how changes in production and information technology affect design.

Organizational Structures that draw on Luis Garicano (2)

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