“…Basic economic location analysis often relies on the spatial competition model, which states that firms locate themselves further away from one another in order to benefit from localized monopolies: close proximity is competition (Chung & Kalnins, 2001; Rezvani & Rojas, 2020). There is much evidence to suggest that firms can benefit from agglomeration: creating larger, denser markets with a greater range of options, decreased consumer search costs, and intra‐industry benefits (Akhtari, 2021; Chung & Kalnins, 2001; Lall et al, 2004; Weidenfeld et al, 2016; Yang, 2016). The tension between spatial competition effects and agglomeration has been a long‐standing issue for researchers (Chamberlin, 1933; Chung & Kalnins, 2001; Rezvani & Rojas, 2020; Varian, 1980).…”