Monday, October 07, 2019

Near and Far

We know that information is crucial, complex and dispersed. This is why there are ubiquitous information markets. We are all on a mission to seek out, not just data and not just information, but also key ideas. We start with hunches re what ideas matter to us and where to look find them. Just hunches. They are the place to start.

Many ideas are best transmitted person-to-person in conversations. This is complicated: tacit information that is not easily articulated, let alone encoded and emailed. Person-to-person interactions include the added benefit, aiding the development and cultivation of essential trust relationships.

These are fairly clear points, but they have been challenged by death-of-distance enthusiasts. The cities (metropolitan areas) are clearly spreading out -- and will continue to do so. I have mentioned before that none of this is paradoxical. The complex location problem addressed by businesses and people involves finding the right blend of interaction partners and interaction modes and distances. If you solve for the equilibrium that is best for you, you will find that you have contacts as well as correspondents near and far.

This morning's WSJ includes Andy Kessler's "An Investment Tip from Mr. ZIP"  He concludes this way:
The future is always fuzzy. Like horseshoes and hand grenades, you only have to be close. Get in the ZIP Code where the wind’s blowing, and watch things fly.
ZIPs can be fairly big. Kessler does not suggest Manhattan or Hong Kong or Tokyo crowding. But it is not death-of-distance either. It allows for agglomeration near as well as far. Both.


City growth is at the edges. It's a very old trend but ignored by many living in a data-free world.