Hotelling's Principle

Hotelling's Principle, in general knowledge and beyond, suggests that individuals or firms in a competitive environment tend to position themselves closely to each other to attract the most customers. For example, if ice cream vendors set up close to one another in a park, they maximize their chance of serving more customers by being conveniently located. This principle highlights how competition influences choices and locations, leading to similarity among competitors rather than diversity. Ultimately, it demonstrates how market dynamics shape behavior in pursuit of attracting the largest audience or consumer base.