Partnership Firms, Reputation, and Human Capital

摘要

In this paper we examine problems associated with on-the-job development and intergenerational transfer of human capital. We focus on tacit human capital that does not lend itself to codification or to arms-length exchange. We envision such human capital including client relationships, a personal reputation for fair dealing, and certain forms of knowledge that, without further scientific development, cannot be codified. For example, a personal reputation is not a fungible asset and even firm reputations have limited fungibility. Similarly, many elements of law, management consulting, investment banking, and even accounting remain arts in spite of the best efforts of professional schools to codify practice.