It comes down to two things really. Zoning laws forcing all retail to the same areas so it just seems like everything is close together. Other thing is for cars and large purchases it’s more likely people want to shop around. If three car dealerships are within 2 minutes of each other and one is 15-20 miles away you’re more likely to go where there are more options first.
It comes down to two things really. Zoning laws forcing all retail to the same areas so it just seems like everything is close together. Other thing is for cars and large purchases it’s more likely people want to shop around. If three car dealerships are within 2 minutes of each other and one is 15-20 miles away you’re more likely to go where there are more options first.
Primarily, it’s zoning. Municipal codes dictate where certain types of businesses and buildings can operate/be built. Retail business, for example, is limited to specified locations (for the most part). It’s also better to have clusters of those businesses so shoppers have fewer overall destinations.
Primarily, it’s zoning. Municipal codes dictate where certain types of businesses and buildings can operate/be built. Retail business, for example, is limited to specified locations (for the most part). It’s also better to have clusters of those businesses so shoppers have fewer overall destinations.
Game Theory. There’s a really good TED ED video on it using the example of two ice cream salesmen working on the same beach. It simplifies things a bit but essentially it comes down to having multiple competitors in the same area being the best way to maximise your market share, even if a more spread out arrangement is better for the customers.
Game Theory. There’s a really good TED ED video on it using the example of two ice cream salesmen working on the same beach. It simplifies things a bit but essentially it comes down to having multiple competitors in the same area being the best way to maximise your market share, even if a more spread out arrangement is better for the customers.
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