Why Do Competitors Cluster Together? The Surprising Game Theory Behind Your Favorite Stores
Have you ever wondered why all the gas stations, cafes, and restaurants are in one crowded spot? Or why fast food chains, clothing boutiques, and mobile phone kiosks are all at the mall? It turns out, there’s a game theory behind it. In this fascinating TED Talk, Jac de Haan explores the Nash Equilibrium and how it informs the retail hotspots we see today. Discover how two competitive cousins vying for ice-cream-selling domination on one small beach can teach us about the power of clustering. While customers may benefit from distributed services, businesses prefer to keep their competition close. Learn how marketing strategies, product differentiation, and price cuts all play a role in the competitive landscape.
https://www.ted.com/talks/jac_de_haan_why_do_competitors_open_their_stores_next_to_one_another/
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