IN YOUR CART

Have you ever noticed that you often find the same kinds of stores together on the same street?
Why are they together? Economics gives us one explanation...

Imagine a beach a half mile long, full of sunbathers. The sun is shining, the water is warm. An ice-cream seller called George arrives. Where does he put his ice-cream cart?
Obviously, 1 [ 1. Click to place phrase ] where the sunbathers can easily walk to him and buy some ice-cream.

Later that day, a second ice-cream seller, Georgina, arrives. George and Georgina talk for a while and decide that the best solution is this: 2 [ 2. Click to place phrase ], and they each put their ice-cream cart in the middle of their half.

In zone A of the beach, the customers go to George, and in zone B they go to Georgina. This is good for the customers, because nobody needs to walk more than 1,300 feet for some ice-cream.
But George isn't happy — he only has 50% of the customers that he had before. So 3 [ 3. Click to place phrase ]

Zone A is now bigger than zone B, and George has more customers and makes more money, but some of his customers need to walk 2,600 feet to get their ice-cream.
Of course, Georgina sees what George has done, and now she isn't happy — she's going to lose money. So 4 [ 4. Click to place phrase ] and gets 50% of the customers again.