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rodela358868
Apr 07, 2022
In Welcome to the Cars Forum
A while ago, the "street stall economy" was very popular, but have you thought about a question, why do people like to gather together to set up street stalls to form a small market? Or how to attract passersby when setting up a street stall? In fact, these points have many similar patterns with the "advertising market". The author of this article has made a detailed analysis of this, let's take a look. 1. The core driving force of the stall economy Stalls, this simple economic phenomenon, were not organized by anyone at first, but small vendors spontaneously and naturally "tie" together to form various morning and night markets, commercial streets, etc. I have a question, you may not be able to answer it: why do you want to get together instead of staying away? There is a very important economic logic hidden in this phenomenon that we have long been familiar with: the job title email list theory of market equilibrium. To give the simplest example: Assume that there are many residents evenly distributed on both sides of Nanluoguxiang in Beijing, and everyone has to eat one kind of fruit - oranges; there are only two hawkers A and B on the street, and they were initially located in the south of the street. , both ends of the north. Buyer: Assuming that the quality and price of oranges are the same, the decision of residents to buy oranges obviously only depends on the distance of the stalls. Further splitting, in order for a consumer to eat oranges, the cost includes: bidding, "sole money". If the price and quality of each stall are the same, everyone will choose the plan with the least distance - that is, the market share of hawkers A and B depends on the distance of the stalls from each resident. Seller: The purpose of A and B's operations is to expand market share and earn more income; how will A in Beikou expand its "share"? There is obviously a solution: move a little further south—the residents from the north will still come to buy, and the residents in the middle of the street will come to the north to buy; the further south he moves, the more people will come to buy his oranges. In a market economy, everyone's rights are equal, and people's decisions are rational, so vendor B will take similar actions, you move a foot, I move a foot; in the end, both A and B move to In the middle of the street, the market is re-divided equally. The power of Nash equilibrium: At the beginning, the "market structure" at both ends of the street was "unbalanced", because although A and B divided the market equally at that time, both parties had the motivation to change the situation at that time; when it moved to the middle of the street, it formed a "market structure". Market Equilibrium", where no one has an incentive to change position; whoever moves a little bit loses some customers - this is a Nash equilibrium. The concept of market equilibrium has always been a concept of behavior, not simply "total supply = total demand". As a result, we have seen the phenomenon of setting up stalls and crowding together - competitors who were originally "incompatible", but still have to be side by side. As long as the market does not reach equilibrium, various competitive means will be used to seize market share. 2. The core driving force of the advertising market This principle also applies to today's online advertising model. The same is true for our auction advertising. Why is there a second bidding strategy? Its core driving force is also to achieve a kind of Nash equilibrium before advertisers.
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