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.
Everyone has talked about the sales side of things but there is another reason.
Talent availability, there is a very good reason the film and technology industries are now located where they are, that is because that is where the talent is.it becomes a bit of a self fulfilling prophecy people who want to work in the industry move to where the jobs are and the jobs move to where the people are.
Everyone has talked about the sales side of things but there is another reason.
Talent availability, there is a very good reason the film and technology industries are now located where they are, that is because that is where the talent is.it becomes a bit of a self fulfilling prophecy people who want to work in the industry move to where the jobs are and the jobs move to where the people are.
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.
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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