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Towards An Economic Theory Of Barriers To Communication

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  • Rico Maggi

Abstract

ABSTRACT This paper presents a microeconomic model of contact behaviour. Cost and expected utility are derived as a function of the number of contacts with u distinct medium, Barriers id communication occur when the optimal number of nomads is equal to zero. The focus is on the cost differences between telecommunication and face to face contact and on the influence of partial information gain on the expected utility of contact. The optimal number of contacts am be derived by analogy to the partial cover insurance decisions. The outlook for empirical implementation is given.

Suggested Citation

  • Rico Maggi, 1989. "Towards An Economic Theory Of Barriers To Communication," Papers in Regional Science, Wiley Blackwell, vol. 66(1), pages 131-141, January.
    • Handle: RePEc:bla:presci:v:66:y:1989:i:1:p:131-141
    DOI: 10.1111/j.1435-5597.1989.tb01176.x
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    Cited by:

    1. Federica Rossi & Rico Maggi, 2019. "Business travel decisions and high-speed trains: an ordered logit approach," REGION, European Regional Science Association, vol. 6, pages 1-16.

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