What is the reason for the grouping of similar businesses in close proximity in various locations?

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What is the reason for the grouping of similar businesses in close proximity in various locations?

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Anonymous 0 Comments

Picture a 3×3 grid. A coffee shop sets on shop in the middle square. It gets traffic from all neighboring 8 squares. Starbucks wants to put up their own competing shop. If they put it in any of the remaining 8 squares, they will not get as much traffic as if they just simply also put it in the middle square, competing for market with the original shop.

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