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It's probably that math phenomenon that explains why gas stations cluster together. I guess this is the one. I heard about it on here long time ago. https://min
by flashback2199 3y ago
It's probably that math phenomenon that explains why gas stations cluster together. I guess this is the one. I heard about it on here long time ago. https://mindyourdecisions.com/blog/2008/03/25/game-theory-tuesdays-hotelling%e2%80%99s-game-or-why-gas-stations-have-competitors-nearby/ https://mindyourdecisions.com/blog/2008/03/25/game-theory-tu...
- pests 3y agoThere's an old joke about how McDonald's would spend millions of dollars on selecting the locations for their franchises. Traffic analysis, weather forecasts, foot traffic, local politics, chances of disaster, advanced models and simulations projecting population density and future profits. Wendy's just put their stores next to a McDonald's.
- dreamcompiler 3y agoBy the same token, Tesla spends a lot of time figuring out where to put superchargers. Electrify America just builds their superchargers across the street from Tesla's (or in the parking lot of the nearest Walmart).
- deathanatos 3y ago… I always figured that gas stations clustered together to minimize the distance long haul drivers would need to go to get to a gas station. I.e., they're clustered, but near highways. The same logic doesn't apply to pharmacies: I don't have a sudden need for drugs on the road. (I'm not sure how much I actually buy the mathematics in the article.)
- flashback2199 3y agoThe nice thing about math is that you don't have to buy it, it's free.
- rtkwe 3y agoThere's also the fact that there are certain spots that are better for a particular store than others so multiple stores will naturally cluster around those nodes. Major intersections that bring people in from surrounding areas easily and quickly and stuff like that.