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Hotelling's Law
Hotelling's law is an observation in economics that in many markets it is Rationality, rational for producers to make their products as similar as possible. This is also referred to as the principle of minimum differentiation as well as Hotelling's Location model, linear city model. The observation was made by Harold Hotelling (1895–1973) in the article "Stability in Competition" in the ''The Economic Journal, Economic Journal'' in 1929. The opposing phenomenon is product differentiation, which is usually considered to be a business advantage if executed properly. Example Suppose there are two competing shops located along the length of a street diverse running north and south, with customers spread equally along the street. Both shop owners want their shops to be where they will get most market share of customers. If both shops sell the same range of goods at the same prices then the locations of the shops are themselves the 'products'. Each customer will always choose t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyses what is viewed as basic elements within economy, economies, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings, and Expenditure, investment expenditure interact; and the factors of production affecting them, such as: Labour (human activity), labour, Capital (economics), capital, Land (economics), land, and Entrepreneurship, enterprise, inflation, economic growth, and public policies that impact gloss ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alfamart
PT Sumber Alfaria Trijaya Tbk, doing business as Alfamart, is an Indonesian primarily-franchised convenience store chain. As of June 2023, it has over 18,000 stores in 27 provinces spread across Indonesia, with 4 million daily customers and tens of thousands of micro, small and medium-scale business partners. The business was started in December 1989 as a trading and distribution company in Jakarta by its president, Djoko Susanto. Ten years later, Susanto ventured into the convenience store category with Alfa Minimart, with their first branch being in Karawaci, Tangerang, Banten. Later renamed as Alfamart, the convenience store brand has since expanded to the Philippines, putting up a total of 2,100 branches there by the end of 2024. History In 1989, Djoko Susanto and his family established a trading and distribution company that sold various products in Jakarta. The distribution company had a corporate share of 70% with Sampoerna and the remaining 30% were with Susanto's PT Si ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commoditization
In business literature, commoditization is defined as the process by which goods that have economic value and are distinguishable in terms of attributes (uniqueness or brand) end up becoming simple commodities in the eyes of the market or consumers. It is the movement of a market from differentiated to undifferentiated price competition and from monopolistic competition to perfect competition. Hence, the key effect of commoditization is that the pricing power of the manufacturer or brand owner is weakened: when products become more similar from a buyer's point of view, they will tend to buy the cheapest. This is not to be confused with commodification, which is the concept of objects or services being assigned an exchange value which they did not previously possess by their being produced and presented for sale, as opposed to personal use. One way to summarize the difference is that commoditization is about proprietary things becoming generic, whereas commodification is about no ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Median Voter Theorem
In political science and social choice theory, social choice, Black's median voter theorem says that if voters and candidates are distributed along a political spectrum, any voting method Condorcet criterion, compatible with majority-rule will elect the candidate preferred by the median voter. The median voter theorem thus shows that under a realistic model of voter behavior, Arrow's impossibility theorem, Arrow's theorem does not apply, and Decision theory, rational choice is possible for societies. The theorem was first derived by Duncan Black in 1948, and independently by Kenneth Arrow. Voting rules without this median voter property, like Instant-runoff voting, ranked choice voting, Plurality voting, plurality, and plurality-with-primaries have a Center-squeeze, center-squeeze effect that encourages candidates to take more extreme positions than the population would prefer. Similar median voter theorems exist for rules like score voting and approval voting when voters are either ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Nash Equilibrium
In game theory, the Nash equilibrium is the most commonly used solution concept for non-cooperative games. A Nash equilibrium is a situation where no player could gain by changing their own strategy (holding all other players' strategies fixed). The idea of Nash equilibrium dates back to the time of Cournot, who in 1838 applied it to his model of competition in an oligopoly. If each player has chosen a strategy an action plan based on what has happened so far in the game and no one can increase one's own expected payoff by changing one's strategy while the other players keep theirs unchanged, then the current set of strategy choices constitutes a Nash equilibrium. If two players Alice and Bob choose strategies A and B, (A, B) is a Nash equilibrium if Alice has no other strategy available that does better than A at maximizing her payoff in response to Bob choosing B, and Bob has no other strategy available that does better than B at maximizing his payoff in response to Alice c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Braess's Paradox
Braess's paradox is the observation that adding one or more roads to a road network can slow down overall road traffic, traffic flow through it. The paradox was first discovered by Arthur Cecil Pigou, Arthur Pigou in 1920, and Stigler's law of eponymy, later named after the German mathematician Dietrich Braess in 1968. The paradox may have analogies in electrical power grids and biological systems. It has been suggested that, in theory, the improvement of a malfunctioning network could be accomplished by removing certain parts of it. The paradox has been used to explain instances of improved traffic flow when existing major roads are closed. Discovery and definition Dietrich Braess, a mathematician at Ruhr University, Germany, noticed the flow in a road network could be impeded by adding a new road, when he was working on traffic modelling. His idea was that if each driver is making the optimization, optimal self-interested decision as to which route is quickest, a shortcut cou ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trader Joe's
Trader Joe's is an American grocery store chain headquartered in Monrovia, California, with 597 locations across the US. The first Trader Joe's store was opened in 1967 by founder Joe Coulombe in Pasadena, California. In 1979, the chain was sold to Aldi founder Theo Albrecht, who owned it until his death in 2010; ownership passed to his heirs. The company operates offices in both Monrovia, California, and Boston, Massachusetts, but remains German-owned. Trader Joe's has been accused of union busting in numerous cases. The company has voiced numerous complaints against the National Labor Relations Board, which enforces United States labor law, U.S. labor law in relation to collective bargaining and Unfair labor practice, unfair labor practices, arguing these are unconstitutional. History Trader Joe's is named after its founder, Joe Coulombe. The company began in 1958 as a Greater Los Angeles, Greater Los Angeles area chain known as Pronto Market convenience stores. Coul ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Whole Foods Market
Whole Foods Market, Inc. (colloquially referred to as simply Whole Foods) is an American multinational supermarket chain store, chain headquartered in Austin, Texas, which sells products free from Hydrogenated fat, hydrogenated fats and artificial colors, Artificial flavors, flavors, and preservatives. A USDA Certified Organic grocer in the United States, the chain is popularly known for its Organic food, organic selections. John Mackey (businessman), John Mackey, the last remaining co-founder of Whole Foods Market, sold the company to Amazon (company), Amazon List of mergers and acquisitions by Amazon, for $13.7 billion on August 28, 2017. , Whole Foods has more than 500 stores in North America and seven in the United Kingdom. History Early years In 1978, John Mackey (businessman), John Mackey and Renee Lawson borrowed $45,000 from family and friends to open a small vegetarian natural foods store called SaferWay in Austin, Texas (the name being a parody, spoof of Safeway In ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Walgreens
Walgreens is an American pharmacy store chain. It is the second largest in the United States, behind CVS Pharmacy. As of March 2025, the company operated more than 8,700 stores in the U.S. Walgreens has been the subject of a number of lawsuits over discrimination, drug fraud, federal billing fraud, distribution of opioids, discrepancies between shelf price and scanned price, overcharging, illegal disposal of hazardous waste, selling expired items, misleading investors, unlicensed pharmacists, and wage theft. Founded in Chicago in 1901, Walgreens is headquartered in the Chicago suburb of Deerfield, Illinois. On December 31, 2014, Walgreens acquired Switzerland and UK-based Alliance Boots, and formed a new holding company, Walgreens Boots Alliance. Walgreens became a subsidiary of the new company, which retained its Deerfield headquarters and trades on the Nasdaq under the symbol WBA. In 2021 the company was one of several pharmacy chains found by a federal jury to have sub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Home Depot
The Home Depot, Inc., often referred to as Home Depot, is an American multinational corporation, multinational home improvement retail corporation that sells tools, construction products, appliances, and services, including fuel and transportation rentals. Home Depot is the largest home improvement retailer in the United States. In 2021, the company had 490,600 employees and more than $151 billion in revenue. The company is headquartered in unincorporated Cobb County, Georgia, with an Atlanta mailing address. Home Depot operates many big-box store, big-box format stores across the United States (including the District of Columbia, Guam, Puerto Rico and the United States Virgin Islands, U.S. Virgin Islands); all 10 provinces of Canada; and all 32 Mexican states and Mexico City. Maintenance, repair, and operations company Interline Brands (The Home Depot Pro) is also owned by The Home Depot, with 70 distribution centers across the United States. It is the seventh List of largest U ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lowe's
Lowe's Companies, Inc. ( ) is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States. As of October 28, 2022, Lowe's and its related businesses operated 2,181 home improvement and hardware stores in North America. Lowe's is the second-largest hardware chain in the United States (previously the largest in the U.S. until surpassed by Home Depot in 1989) behind rival the Home Depot and ahead of Menards. It is also the second-largest hardware chain in the world, also behind the Home Depot, but ahead of European retailers Leroy Merlin, B&Q, and OBI. The company previously operated in Australia through the Masters Home Improvement joint venture until 2016, in Mexico until 2019, and in Canada until selling its operations (which will be consolidated under the Rona brand) to Sycamore Partners in 2023. History The first Lowe's store, Mr. L.S. Lowe's North W ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
