Sola
beta
a year

Short version is that each firm moves closer to their competition in order to obtain more market share, but by doing so make it more difficult to reach for people who are further away, thus resulting in a non-SOS (Socially Optimal Solution).

This is partially mitigated by things like the mall, which helps increase access to more people by things like public transportation and/or highways, but ultimately since our society is driven by profit rather than value, we end up with shops that are further away and more difficult to reach.

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United States of America, Fremont
5 comments
JADED JOEY (๐Ÿ™Š5)
I will add my thoughts later. And I promise to watch the video first. ๐Ÿ˜Š
Philo 0316Author
It's also only 4 minutes long!
Chickonthenet
The question to me is WHY are most driven by price over value? Is it the need to be included, part of a club? How can we create the club that buys quality products at a fair price and keeps those products for a long time? This will help shops make more money, have regular customers that pay their bills and create the sense of belonging that humans require.
Philo 0316Author
I'm not exactly sure what you're trying to say here. What do you mean when you say most are driven by price over value?
JADED JOEY (๐Ÿ™Š5)
Oh my! Where should I start? ๐Ÿ˜ This is a nice little piece about game theory, but it slightly misses the point. Or at least it ignores some other reasons that play a big role. First of all, different shops of the same product have been clumped together for thousands of years. There have always been the carpenter road, the restaurant area, and so on. One reason is efficiency and resources. My raw material dealer charges less, when he doesn't has to drive through the valley over the mountain for delivery but can unload everything in a small area. Same for energy and what ever else is needed. Then, the beach is much bigger than in this example. Well, you can put up your ice cream hut at an other part of the beach with no competition at all. Guess what happens? You won't sell nothing because your customers go where already are three vendors in a row. They have more choice, lower prices and meet more people. This is the most important factor. The people don't come to the shops. The shops have to come to the people. When you dream of opening a restaurant, you don't open it where is no restaurant near by, but where are already a lot. As a customer you don't go to the one place in your neighborhood but downtown where there is a big choice of restaurants. Same with any shop. You look for shoes? You go where you find at least three shops close to each other and not to the little shop in your street.
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