This lovely video tells you about the concept of a Socially Optimal Solution – a solution that works very well for society – and why such solutions are often not stable.
It also explains the concept of a Nash Equilibrium – a solution that is stable, but not always optimal for society.
It also tells you how aggressive competition can lead to results that are not optimal for society.
Aiaioo Labs Blog 
2 thoughts on “What game theory says about why gas stations are built next to each other”