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Buzz: face-to-face contact and the urban economy

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Listed:
  • Storper, Michael
  • Venables, Anthony J.

Abstract

This 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.

Suggested Citation

  • Storper, Michael & Venables, Anthony J., 2003. "Buzz: face-to-face contact and the urban economy," LSE Research Online Documents on Economics 20008, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:20008
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    References listed on IDEAS

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    More about this item

    Keywords

    Agglomeration; clustering; urban economics; face-to-face;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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