R&D Race
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- Each firm competes to find a disease cure by investing into R&D
- Firms differ in the value of finding the cure
- At any point, you may choose to increase your current investment
- This increased investment must make you the firm with the highest current investment
- At the end of the game, the firm that invested the most finds the cure fastest (wins)
- Only this highest investing firm earns revenues (value of winning)
- Your screen displays:
- number of firms;
- your value of winning;
- range of possible values for winning; and
- current investments, sorted from highest to lowest.
- Adjust the slider to choose your investment and press Spend
- Payoff = Revenue - Investment
- For Winner: Revenue = Value of Cure
- For Non-Winners: Revenue = $0
- Winning firm's investment = $72 million
- Winner's value for the cure = $76 million
- Three other non-winning firms:
- Non-Winner 1 investment = $55m,
- Non-Winner 2 investment = $47m
- Non-Winner 3 investment = $0
| Firm |
Revenue |
– |
Investment |
= |
Payoff |
| Winner |
$76m |
– |
$72m |
= |
$4m |
| Non-Winner 1 |
$0 |
– |
$55m |
= |
–$55m |
| Non-Winner 2 |
$0 |
– |
$47m |
= |
–$47m |
| Non-Winner 3 |
$0 |
– |
$0 |
= |
$0 |
