期刊名称:International Business & Economics Research Journal
印刷版ISSN:1535-0754
电子版ISSN:2157-9393
出版年度:2011
卷号:1
期号:11
语种:English
出版社:The Clute Institute for Academic Research
摘要:How will improvements in information technology affect growth of cities? Futurists have suggested that as telecommunications technology improves there will be no need for face-to-face contact and therefore cities, in which face-to-face interactions are facilitated, will become obsolete. This paper develops a general model where individuals involved in a relationship use two modes of interaction, face-to-face interactions and electronic communications. Comparative static analysis on the optimal solutions shows that improvements in telecommunications technology may increase or decrease the demand for face-to-face interactions, depending whether face-to-face interactions and telecommunications are substitutes or complements. The placement of the model within a spatial framework shows that city size increases with electronic communications if face-to-face interactions and electronic communications are complements.