𝗪𝗵𝘆 𝗗𝗼 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗼𝗿𝘀 𝗢𝗽𝗲𝗻 𝗦𝗵𝗼𝗽𝘀 𝗡𝗲𝘅𝘁 𝘁𝗼 𝗘𝗮𝗰𝗵 𝗢𝘁𝗵𝗲𝗿? Have you ever wondered why competing stores, restaurants, or even gas stations are often next to each other? It seems counterintuitive, right? But there's a reason behind this curious business behavior. And, there comes the concept of Nash equilibrium. 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗡𝗮𝘀𝗵 𝗘𝗾𝘂𝗶𝗹𝗶𝗯𝗿𝗶𝘂𝗺? Nash Equilibrium a situation where no one benefits from changing their strategy unless everyone else does the same. It’s a state where brands make their decisions based on what others are doing. Why? It is because it’s the optimal choice for everyone. When it comes to retail, competitor clustering can actually benefit all businesses involved because it: 1. Shares the customer pie 2. Creates a destination 3. Cost-sharing 4. Encourages innovation For marketers, being close to competitors boosts customer traffic and increases conversion chances. Wondering how to strategically choose the best location for your next store? At DAiOM, we understand that being close to your competitors can actually be a smart move. We specialize in helping brands with store expansion strategies backed by data. #brand #data #marketing
📌 Check out the detailed blog - https://daiom.in/nash-equilibrium-and-the-mystery-of-competitor-clustering/