Proceedings of the 2020 2nd International Conference on Economic Management and Cultural Industry (ICEMCI 2020)

Consequences of Risk for a Start-Up Business and the Effect of External Setback on Cooperation in a Public Goods Experiment

Authors
Nanrui Gong
Corresponding Author
Nanrui Gong
Available Online 30 November 2020.
DOI
https://doi.org/10.2991/aebmr.k.201128.029How to use a DOI?
Keywords
Public Goods, Start-up Firms, Business Risks, Game Theory, Business Cooperation
Abstract

Every start-up business has to cope with is risky, whether it is originated internally or externally. Even if a business start-up functions without major deficiencies on the inside, external factors such as a market crash, a government fine or an attack from business competitors might seriously undermine the company’s profitability. Without the promise of profit, there is a likelihood that the external setback might challenge the cooperation among partners who together founded and invested in the start-up. This paper studies the impact of external setbacks on cooperation in business start-ups by modeling a start-up using a public goods game. Such a public goods game yields results that suggest either the total collapse of cooperation in a start-up group when confronted with an external setback large enough to eliminate profit, the full reorganization of cooperation, or merely partial recovery of cooperation.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2020 2nd International Conference on Economic Management and Cultural Industry (ICEMCI 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
30 November 2020
ISBN
978-94-6239-283-0
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.201128.029How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Nanrui Gong
PY  - 2020
DA  - 2020/11/30
TI  - Consequences of Risk for a Start-Up Business and the Effect of External Setback on Cooperation in a Public Goods Experiment
BT  - Proceedings of the 2020 2nd International Conference on Economic Management and Cultural Industry (ICEMCI 2020)
PB  - Atlantis Press
SP  - 143
EP  - 146
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201128.029
DO  - https://doi.org/10.2991/aebmr.k.201128.029
ID  - Gong2020
ER  -