Comment on Hotelling’s Game, or Why Gas Stations Have Competitors Nearby (2008)parentComments−mywittyname7yCustomers will naturally migrate to where there is more options, similar to the network effect. See: mall food courts, food trucks, strip malls, etc. So it's possible that the two clustered stands end up splitting a >50% share of the market.
Comments
Customers will naturally migrate to where there is more options, similar to the network effect. See: mall food courts, food trucks, strip malls, etc. So it's possible that the two clustered stands end up splitting a >50% share of the market.