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

The video explores why businesses often cluster together, using Hotelling's Model of Spatial Competition as an example. It illustrates this concept with a scenario involving two ice cream vendors on a beach, showing how they adjust their positions to maximize sales, eventually reaching a Nash Equilibrium. The video also discusses the implications of such clustering in real-world business environments, where companies must balance proximity to competitors with customer accessibility.

Explain the concept of Nash Equilibrium in the context of the ice cream vendors.

What implications does Hotelling's Model have for businesses in competitive markets?