The Lighthouse: Public Goods & Free-Rider Problem
Explore why markets under-provide public goods through a lighthouse funding game with three AI captains.
Alternate between incumbent CEO and entrant CEO across 5 rounds to discover Baumol's contestability theory — that what disciplines firms is not competition itself but the threat of entry, and that sunk costs (not market share) are the true barrier.
An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.
The decisions participants make during the simulation:
What participants follow on screen as the rounds go by:
Designed for courses in Microeconomics.
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