The empty threat
The incumbent swears it will start a price war if you enter. When should you believe it?
A shop owns a market, and a newcomer is deciding whether to open next door. The owner promises a price war. The middle panel shows what fighting would really pay the owner once the newcomer is in. Move the cost of fighting and watch the threat turn from empty to real.
Board: Coordination Schelling Points and Credible Threats →One dial and two tabs. The game is solved, not simulated, so every number is the same each time you set the dial.
try this Drag What a price war costs the incumbent from 6 down to 1, and watch The fork after entry.
Included with a plan
This lab is included with a plan. The first three lessons of every track are free, with their boards and videos. A plan unlocks every lesson, board, video, lab and paper for one price.