Comment by nfin
8 hours ago
Maybe it‘s the Nash equilibrium from a timing perspective?
Like the reason that close to a McDonals there is usually a Burger King.
8 hours ago
Maybe it‘s the Nash equilibrium from a timing perspective?
Like the reason that close to a McDonals there is usually a Burger King.
The joke is that McDonald's spends hundreds of thousands of dollars to identify new locations - traffic studies, visibility, demographics, nearby traffic generators, site characteristics, drive-thru feasibility, etc. They have one of the most rigorous processes in the industry. Burger King's process is to open a location across the street.
I think the story was Starbucks -> Seattle's Best Coffee, not McD's --> BK. but it does work I guess.
reminds me of SBC's (Seattle's Best Coffee) strategy, which was decidedly not Nash: put a store across the street from every Starbucks.