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

Author

Listed:
  • Anthony Venables
  • Michael Storper

    (CSO - Centre de sociologie des organisations (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

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

  • Anthony Venables & Michael Storper, 2006. "Buzz: Face-to-face contact and the urban economy," Post-Print hal-03397764, HAL.
    • Handle: RePEc:hal:journl:hal-03397764
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    JEL classification:

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

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