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 London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 20008.
Length: 37 pages
Date of creation: Dec 2003
Date of revision:
Agglomeration; clustering; urban economics; face-to-face;
Other versions of this item:
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
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