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TOWARDS AN ECONOMIC THEORY OF BARRIERS TO COMMUNICATION

Rico Maggi

Papers in Regional Science, 1989, vol. 66, issue 1, 131-141

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.

Date: 1989
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https://doi.org/10.1111/j.1435-5597.1989.tb01176.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:66:y:1989:i:1:p:131-141

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