spatial competition

Spatial competition refers to how businesses or providers compete based on their physical locations. When multiple companies offer similar products or services, being closer to customers can provide an advantage—like a nearby coffee shop attracting more customers than one farther away. Conversely, some firms might choose strategic locations to avoid direct competition. Overall, spatial competition influences where businesses choose to operate, affecting prices, variety, and accessibility for consumers. It’s a key concept in economics that explains how geographical positioning impacts market dynamics and consumer choices.