Buzz: Face-to-Face Contact and the Urban Economy
AbstractThis paper argues that existing models of urban concentrations are incomplete unless grounded in the most fundamental aspect of proximity; face-to-face contact. Face-to-face contact has four main features; it is an efficient communication technology; it can help solve incentive problems; it can facilitate socialization and learning; and it provides psychological motivation. We discuss each of these features in turn, and develop formal economic models of two of them. Face-to-face is particularly important in environments where information is imperfect, rapidly changing, and not easily codified, key features of many creative activities.
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Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0598.
Date of creation: Dec 2003
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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
Agglomeration; clustering; urban economics; face-to-face;
Other versions of this item:
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-01-02 (All new papers)
- NEP-GEO-2005-01-02 (Economic Geography)
- NEP-URE-2005-01-02 (Urban & Real Estate Economics)
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