Why does the second stall open right next to the first?

Walking to the LRT, you pass a stall selling nasi lemak at the bottom of the stairs. It is a good pitch, because everyone coming down has to pass it. Six weeks later there is a second stall beside it, with the same nasi lemak at the same price. By Raya there are four in a row, with an air sirap seller on the end.

You have probably explained this to someone. You said it was ikut-ikutan, which is Malay for following along. One person sees a friend making money and does the same, without a plan of his own. It is a remark you hear about Malay traders in particular, though the same row of near-identical shops runs down Petaling Street, along the phone floor at Low Yat, and past many a strip of bank branches on a high street.

It is a tidy answer. We want to spend a few posts taking it apart, because we think it runs backwards. The trader by the stairs has almost nothing to work with: a little saved capital, no data, one shot at choosing a spot. Look closely at the decision and it holds up at every step.