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These slides are for playing the entrepreneurship game. Basic structure courtesy of Howard Aldrich, Dept of Sociology, UNC.
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Entrepreneurship Game One player in each pair bets on each
flip (up to maximum of 3 coins) Winner of the bet takes the coins from
the loser, regardless of who flipped or made the bet
Players must flip quickly & cannot stop betting
Players cannot borrow coins once they go bankrupt
If bankrupt, players are out of the game
When time is called, stop & count your coins
Guess the Results of Our Game?
20+
15-19
10-14
5-9
1-4
0
# of
coi
ns
Rounds
Why Did “X” Do So Well?
Why This Outcome? Given the structure of the game
and the equally high skill level, human capital, and wealth of all the players, a skewed distribution was inevitable.
Why This Outcome? Given the structure of the game
and the equally high skill level, human capital, and wealth of all the players, a skewed distribution was inevitable.
Winner Take All!
Distribution of Firm Size (U.S.)
0
500
1,000
1,500
2,000
2,500
3,000
2 7 15 60 300 500
Number of Employees
Numbe
r of F
irms (000
s)
Distribution of Corporate Assets (U.S.)
0
1
10
100
1,000
10,000
0 100,000 200,000 300,000 400,000 500,000
Ass
ets
(log
scal
e)
Number of Firms
Things Would Have Been Different If Players…
Started the game with different #’s of coins Wealth inequality
Could borrow coins Access to credit – capital markets
Could play in groups Coalitions, alliances, pooling resources,
organized crime?
Paid taxes when rich or received subsidies when poor Government intervention
Could withdraw from the game or buffer themselves against competition Local isolation, creation of IP or other
competitive barrier
Lessons Baseline against which to judge
population level outcomes… …In other words, don’t be too
arrogant or too judgmental!
There ARE “rules of the game”
Challenge: How to define, manage or limit the scope of competition?