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by chongli
1970 days ago
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It's almost at the point where there are bubble tea sellers directly next to each other in the street That’s an example of Hotelling’s law [1]. Competing businesses are better off clustering together in high traffic areas rather than spreading out to cover the market in a way that serves customers more efficiently. It’s a weird phenomenon and a clear refutation of the invisible hand. [1] https://en.wikipedia.org/wiki/Hotelling%27s_law |
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Actually it's the opposite: more choice is brought by the invisible hand where people naturally go to, even if it puts businesses in direct competition and thus reduce prices