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Similarity: Models of Similarity

In: 45 Conversations About Behavioral Economics

Author

Listed:
  • Li Way Lee

    (Wayne State University)

  • Aaron Keathley

    (Wayne State University)

Abstract

Two ice-cream stores are lookingsimilarity to establish themselves in a new town. They have the same ice-cream, and they have agreed to charge the same price and provide the same services. They are free to compete only in location. Consumers live in houses distributed uniformly in town. Where are the two stores going to be? Consider this in any of the following three scenarios: (a) The town is a finite line, (b) The town is a circle, (c) The town is a disc.

Suggested Citation

  • Li Way Lee & Aaron Keathley, 2022. "Similarity: Models of Similarity," Springer Books, in: 45 Conversations About Behavioral Economics, chapter 0, pages 39-42, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-05046-6_10
    DOI: 10.1007/978-3-031-05046-6_10
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