So if firms can not own their human capital how do they overcome such a problem. What is the gue? It looks like companies in Silicon Valley tied to deal with the issue by agreeing not to hire people of each others companies.
Six leading technology companies, including Apple, Google and Intel, reached an antitrust settlement on Friday with the Justice Department that promises to increase the competition for sought-after technology workers. The government had conducted a yearlong investigation into agreements among companies not to poach employees from each other.Anti-competitive or just an rational response to not being able to own some of your most valuable assets?
The investigation focused on five agreements by the companies not to make cold calls to employees that each company had placed on a do-not-call list. Each of the pacts, according to the Justice Department filing, involved a pair of companies: Apple and Google, Apple and Adobe, Apple and Pixar, Google and Intel, and Google and Intuit.
- Hart, Oliver D. (1995). Firms, Contracts, and Financial Structure, Oxford: Oxford University Press.