Hotelling's law is an observation in economics that in many markets it is 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 linear city model. The observation was made by Harold Hotelling (1895–1973) in the article "Stability in Competition" in Economic Journal in 1929.
You know, when we are operating different places, we are experiencing different things. Some places we find no shops and businesses, and other places you are finding some people and some firms, and other places we find many shops and businesses, and there are many people being operating in the areas where we are finding firms. And Hotelling’s law is about why we are finding clustering of people and firms some places, and other places there are nothing. So, in economics we are thinking about why we are finding something some places when coming to businesses. And we see this with the existence of petrol stations, and how many petrol stations there are different places. Some places we find no petrol stations when driving in a valley in a country, and sometimes we find several petrol stations at the same place! So, clustering processes and outcomes are something we are finding many places, and therefore we find no firms sometimes, some firms some places, and many firms in some places.
Silicon Valley is a place where we find many cases of firms, and we need enough competence to gain trust the best places. And we are finding many firms some places where there is sensible, and where firms have found the logic of doing cooperation with other people. And we have enough power in our bodies, and we should have courses of these things, and not doing guesses in these areas, because we know the literature, and we should use study programs at all levels to do the right choices, and therefore any choice can be questioned, and you should always ask about why and how. And about which implications these things really have.
So, things are strange in business life, but the main thing of all firms is location, location and even more things and issues around the location. And we are finding firms where there are enough people, and we should use the competence in all its variants, when doing all the activities that are happening, and we should use ourselves and the human nature in the nature, and that is the way we should understand working life, and we need sciences to know different things, and the more we know the better competence we have. And at the same time, the more we know the less we know. And business schools and universities with specialization in economics and administration are the best platform we can get, and we understand enough things when using such knowledges, and the firms should earn profit and obtain trust and satisfaction in the markets where we are.
So, we are coming to different places in the world, and what we can do in different businesses is in relation to what we know, and where we have been. And many people do not have competence, but we should use the knowledges in such ways that we are understanding every firm as a case with different experiences and knowledges, and sometimes we find firms in reality, and sometimes we do not find anything. And we should use our knowledges in philosophy, psychology, sociology, economics and human relations just about what it means to be a human, and we should use the courses given for the business life, and not use religions if no people are thinking and feeling and acting in these ways.
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