Journal of Economic Geography, Vol. 4, No. 4, © Oxford University Press 2004; all rights reserved.
Buzz: face-to-face contact and the urban economy
* Institute of Political Studies, IEP, Sciences-Po, Paris; and London School of Economics, Houghton Street, London, WC2A 2AE, UK. email 
m.storper{at}lse.ac.uk
** London School of Economics and Centre for Economic Policy Research. email a.j.venables{at}lse.ac.uk http://econ.lse.ac.uk/staff/ajv/
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.
Keywords: agglomeration, clustering, urban economics, face-to-face,
JEL classification: R1
Date submitted: 7 January 2003
Date accepted: 20 January 2004
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