Hotelling's Game, or Why Gas Stations Have Competitors Nearby

There are hundreds of gas stations around San Francisco in the California Bay area. One might think that gas stations would spread out to serve local neighborhoods. But this idea is contradicted by a common observation. Whenever you visit a gas station, there is almost always another in the vicinity, often just across the street. viaHotelling’s Game, or Why Gas Stations Have Competitors Nearby - Mind Your Decisions.