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homunq comments on A Voting Puzzle, Some Political Science, and a Nerd Failure Mode - Less Wrong
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Actually, that's probably a different phenomenon. Stores of a similar type tend to cluster, because that's where the customers (and, to some extent, suppliers) cluster. If you were opening a new flower stall, then 1% of the 10K potential customers in the flower market is still a better deal than 100% of the 10 potential customers on some random street corner.