Laboratory Evidence on Face-to-Face

Abstract

The notion of face-to-face contacts has recently become very popular as a reason why firms still locate in proximity to others after the “death of distance.” Controlled laboratory experiments provide direct and reliable evidence on the importance of face-to-face contacts. It is the purpose of this article to survey and to organize new and developing string of literature with a special focus on its importance for regional economics. However, the article might also serve to alert more experimentalists to the importance of their work for current regional science, of which they seem not to be aware.