3 ms·
Setting up shop directly next to your competitor is the best choice, i.e., Nash equilibrium. That's why all the gas stations and coffee shops cluster up instead
by tantalor 10y ago
Setting up shop directly next to your competitor is the best choice, i.e., Nash equilibrium. That's why all the gas stations and coffee shops cluster up instead of spreading out.
For example, on a beach, you should expect 2 ice cream vendors to cluster in the exact middle rather than move closer to their respective territories. This video explains it perfectly: https://www.youtube.com/watch?v=jILgxeNBK_8 https://www.youtube.com/watch?v=jILgxeNBK_8
- kmill 10y agoUnlike gas stations and coffee shops, which have static locations, ice cream trucks are more like buses. When a pair of buses on a route bunch up, the one in front gets fuller.
- jacobush 10y ago...fuller of money.
- HarryHirsch 10y agoNotional Express proved that that is true, when they "disrupted" public transportation in Britain.