When two ice cream vendors locate next to each other on the beach, they are exhibiting a Nash equilibrium.

Name: When two ice cream vendors locate next to each other on the beach, they are exhibiting a Nash equilibrium.
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Question

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In a Nash equilibrium, each player's strategy is optimal given the other player's strategy. By locating next to each other, both vendors maximize their potential customer base, assuming customers are evenly distributed along the beach.

When Two Ice Cream Vendors Locate Next to Each Other