Why do competitors open their stores next to one another? - Jac de Haan
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View full lesson on ed.ted.com - http://ed.ted.com/lessons/why-do-competitors-open-their-stores-next-to-one-another-jac-de-haan Why are all the gas stations, cafes and restaurants in one crowded spot? As two competitive cousins vie for ice-cream-selling domination on one small beach, discover how game theory and the Nash Equilibrium inform these retail hotspots. Lesson by Jac de Haan, animation by Luke Rowsell.
Comments
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Also implying a distribution of people on the beach but it works
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basically,the point is Teddy is a bullshit
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ted is a cunt
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thats great, but with shops they cant move around so it doesnt really explain much
and little shops like hairdressers, well ,their people might not know which one to go to and just pick a random one! -
I just realized... Teddy (Ted) + Eddy (Ed) = Ted-ed!
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TL;DW Keep your customers close, but your rivals closer.
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Let's agree on using a SOS.
What? who's in danger? AAAAAAAAAAAAAAAAHHHHHHHHHHHHHHHHHHHHHHHHHHH! -
Just move your cart to the entrance
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Thank you
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Write sos on the beach
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Ted bars Ed bars (remove the word bars see what you get)
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The classic phrase comes to mind, "Keep you friends close, and your enemies closer."
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This is a poor explanation. Having four fast food chains right next to each other cannot work with this model. A single one of them could move and take a huge percentage of the population. The issue is that we don't go to whichever restaurant is closest. We go to whichever one we want. The advantage of having groups of stores, is that you go there and then decide what you want. Think of the mall example mentioned at the end. There are eateries outside the food court and eateries within the food court, but generally the ones in the food court do better because people decide to eat and then go to food, then decide what to eat. They don't just eat whatever is close.
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competition is for poor people, the rich people make monopolies.....and john nash was gay
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Me and Teddy had the REALEST beef.
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I still don't understand
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Sorry but this explanation is surely not the full story. That ludicrous image of everyone from one side of the beach ALWAYS going to the closest vendor even though they're right next door to each other should tell you that. If a competitor opens up / moves right next door with the SAME product, ice cream, they are willingly accepting a potential psychological negativity that the other business will badmouth them / give them constant bad vibes / aggressively respond to deals offered by the other business for invading their turf. To open right next door might sometimes be a sign of deliberate 'clustering' eg a food hall in a shopping mall. By putting businesses together that offer slightly or largely different produce of the same genre eg food, the consumer is constantly invited to make their own comparisons 'this or that' and they're more likely to choose one of them and both businesses can benefit than if the 2 businesses were scattered within the rest of the mall where it's easy to keep saying 'oh I'll hold out to see if there's a REALLY great restaurant up here'. Even if one business is clearly vastly better than another, if the inferior business is in such a kind of proximity and a decent amount of presentation to implicitly suggest mutual association then the inferior business will also benefit from a halo effect.
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For some reason, I expected the first sentence in this video to be related to Spongebob. "Have you ever wondered why Plankton decided to place the Chum Bucket in front of the Krusty Krab?"
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Goddammit Ted
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teddys an asshole
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