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#gametheory#nashequilibrium#hotellingmodel

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

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  • A classic. People kept recommending it from 2015 to 2019.
  • Presented by Jac de Haan

Beginner. No background in the topic needed.

7.4M views14 years ago3 recommendations

Computer scienceComputation and complexity

Jac de Haan explains how game theory and the Nash equilibrium drive competing businesses to cluster in the same location.

View full lesson on ed.ted.com - ed.ted.com/lessons/why-do-competitors-open-their-stores-next… 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.

Why it's here

3 people recommend this

What people say. Recommended as a clear and intuitive explanation of the Nash equilibrium and spatial competition.

Litoston Hacker News • Recommends

On “John and Alicia Nash, 1928,1933-2015”

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 - link to this video 2 - link

tantaloron Hacker News • Recommends

On “A Renegade Muscles in on Mister Softee’s Turf”

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: link to this video

asdf9240on Hacker News • Recommends

On “How is China able to provide enough food to feed over 1B people?”

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: link to this video )

Litoston Hacker News • Mentions

On “Adblockers: The Only Way Out”

I'm thinking aloud and obviously taking a negative purist view here, but does anyone else wonder, if in 20-30 years, if civilisation has actually advanced any, if we'll look back at ads in the same way we now seem to be treating tobacco, sugar, alchol etc. etc. ie a poison, but in this case of the mind rather than the body 1 2? I mean all that mind bogglingly dark patterny/cynical gameplay we engage in everytime we watch one. And there's also all the negative, misery inducing, pressure when you realise, even if you sold the house and spent it all on plastic surgery you wouldn't be anywhere near as attractive or thin as the size zero model they've just tried to use to sell you the gadget…

musesumon Hacker News • Mentions

So, basically a Nash Equilibrium 1. Am happy to mindlessly converge in most areas, leaving me free to focus on a single divergent opportunity. 1 link to this video

Terr_on Hacker News • Mentions

On “How one of the world’s major money laundering networks operates”

Some of it might be a competition thing, where clustering is a Nash Equilibrium to prevent the other guy from taking unclaimed territory/customers. link to this video