Should you be paid based on your experience or on your knowledge?

Your question reminds me a bit of a question I often heard when I was a PhD candidate: "is theory more important than practice?". For me, the two are complementary and even inseparable :) What do you think?

Knowledge needs application. The application brings in experience. Both the elements are incomplete without relevance. E.g. If you are a startup founder would you pay a fresher who know a lot, more than someone who has experience that you are seeking? You have your answer right here :)