Here is a quote from RFC 2328 (OSPF Version 2) that should help answer this question:
Broadcast networks
Networks supporting many (more than two) attached routers, together with the capability to address a single physical message to all of the attached routers (broadcast). Neighboring routers are discovered dynamically on these nets using OSPF's Hello Protocol. The Hello Protocol itself takes advantage of the broadcast capability. The OSPF protocol makes further use of multicast capabilities, if they exist. Each pair of routers on a broadcast network is assumed to be able to communicate directly. An ethernet is an example of a broadcast network.
http://www.internetworkexpert.com/rfc/rfc2328.txt
HTH,
Brian Dennis, CCIE #2210 (R&S/ISP-Dial/Security)
bdennis@internetworkexpert.com
Internetwork Expert, Inc.
http://www.InternetworkExpert.com
Toll Free: 877-224-8987
Direct: 775-745-6404 (Outside the US and Canada)