so someone in the middle trips all four, but the highest bids from the smallest circle get them.
someone further out is outside of the smallest circle, but is similarly caught in the consecutive circle with it's lower corresponding bid.
some caveats, geo targeting isn't super precise, so this plan will be imperfect always. and the smaller the differences in the different radii, the less differentiation you'll be able to achieve.
further, geo targeting isn't just based on where someone is located, but also (simultaneously) if their search includes geographic indicators... like someone in Miami searching for "Chicago Hotels" will be treated as someone who will see ads geotargeted for the Chicago area... so this will also hack the plan apart a bit.
see more here about geo targeting in general:
[adwords.google.com...]
and here for location specific geo targeting:
[adwords.google.com...]
have fun!