Prize Rate Game

Firms choose imitate or innovate, then openness or secrecy. A prize rate k pays for disclosure, per unit of training budget E. Units: E_d = 1, C_d = 0.

k (prize)

0.50

Lower bound: —

L (loss)1.00

ΔC (cost gap)2.00

ΔE (budget gap)1.00

—

	secrecy	openness
imitate	—	—
innovate	—	—

Best cell is highlighted. Derivation: k_formula.ipynb.