Why do competitors open their stores next to one another? - Jac de Haan

What people said

tantalor · 2016-05 · Strong recommendation

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: [VIDEO]

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Litost · 2015-05 · Strong recommendation

I've only had a cursory introduction to Nash's work through brief flirtations with game theory, but this is the best explanation i've found so far on Nash's Equilibrium which i still remember vividly for highlighting why a "Socially Optimal Solution" is pretty rare in real life [1] (apologies in advance to the ted-talk averse). Has anyone got any other good pointers to examples of his work? P.S. Can anyone recommend A Beautiful Mind, i'm kinda put off by the description in here which makes it sound very hollywoodised [2]? [1] - [VIDEO] [2] - [LINK]

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asdf9240 · 2019-07 · Recommendation

extrapolating a small sample size will probably produce unreliable results. also its possible that there are 3 sushi restaurants on the same street because of the Hotelling model of spatial location (good vid explaining that: [VIDEO] )

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