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

TED-Ed · explainer · Watch on YouTube

Probability & game theoryMicroeconomics & behavioral economics

What it is

A short animated TED-Ed lesson in which two competing ice cream vendors on a beach illustrate why rival shops cluster together. It introduces game theory and the Nash equilibrium through the Hotelling model.

Why Hacker News recommends it

HN people use it as a clear, quick explanation of Nash equilibrium and why competitors cluster.

  • 3 people recommended it
  • 3 different months
  • 2 strong recommendations
  • first 2015, last 2025

What HN commenters said

  1. “this is the best explanation i've found so far on Nash's Equilibrium”

    Clear explanation of Nash equilibrium and why socially optimal outcomes are rare.

    Litost, 2015-05 · Strong recommendation · in “John and Alicia Nash, 1928,1933-2015”

  2. “This video explains it perfectly”

    Explains why competitors cluster, via the ice cream vendors on a beach.

    tantalor, 2016-05 · Strong recommendation · in “A Renegade Muscles in on Mister Softee’s Turf”

  3. “good vid explaining that”

    Explains Hotelling model of competitors locating near each other.

    asdf9240, 2019-07 · Recommendation · in “How is China able to provide enough food to feed over 1B people?”

Excerpts from Hacker News comments, linked to the originals. Summaries and labels were written by a language model from those comments.

Topics: nash equilibrium, hotelling model, competition, economics, animation

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