Imagine you are the director of a chain of cafes competing with another similar chain. Each of you is about to rent a shop in one of the 7 new identical huge apartment buildings standing along a beach strip. Hotelling's Main Street Once each of you knows exactly where the other competitor locates, it will be too late to move to another location. You expect that the customers (the residents in the 7 buildings) will not distinguish between the two cafes and will pick the one which is closest to their home. In which building (a number between 1 and 7) will you locate your shop?