IS TELECOMMUTING CHEAPER THAN TRAVEL:: AN EXAMINATION OF INTERACTION COSTS IN A BUSINESS SETTING

Presents an analysis of telecommunications and travel costs for typical business meetings. The paper addresses the relative cost of telecommunications and travel in conducting interactions. Three factors are assumed to determine these costs: distance, duration of interaction and number of participants. The analysis assumes that cost alone affects choice, and ignores other communication qualities. The relationship between telecommunications and travel costs was tested quantitatively through a case study of typical business meetings in the U.S., based on data from 1988. The results show that travel costs are lower than telecommunication costs for shorter distances, and that the relationship between telecommunications and travel costs differs substantially as a function of number of participants and meeting duration. Because of ongoing rapid changes in the costs of both of these interaction modes, the complex competition between them will continue. The implications of the findings for location decisions and policy-making are discussed.

Media Info

  • Features: Figures; References; Tables;
  • Pagination: p. 291-318
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00622693
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 30 1992 12:00AM