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Comment on Hotelling’s Game, or Why Gas Stations Have Competitors Nearby (2008)

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The Gas Station's game doesn't seem to correlate well with the game suggested with the Hot Dog stand analogy. Setting up gas stations is expensive and requires a lot of infrastructure setup and time, once set up people just can't move it around in a city. Now if I were setting a new gas station I would place it in a location where I win greater market share and is disadvantaged to the competitor. Due to the resource constraints, the competitor has to just stay where they were. Gas station locations don't lie in efficient markets where the equilibrium is achieved by being close to each other.

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