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Why do competitors open their stores next to one another? - Jac de Haan

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TEDEd Animation

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Why are all the gas stations, cafes and restaurants in one crowded spot? As two competitive cousins vie for ice-cream-selling domination on one small beach, discover how game theory and the Nash Equilibrium inform these retail hotspots.

What principle can we use to explain why businesses cluster in groups instead of spreading evenly throughout a community?

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TED-Ed Animations feature the words and ideas of educators brought to life by professional animators. Are you an educator or animator interested in creating a TED-Ed Animation? Nominate yourself here »

Meet The Creators

  • Educator Jac de Haan
  • Animator Luke Rowsell
  • Narrator Jac de Haan

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