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.

What new insight or understanding did you gain from this video?