Kleit's experiments indicate that almost all entrants choose to enter in the first period. After these initial periods, the students are reassigned roles and randomly paired again for a second round of gaming. Most of the soft incumbents then figure that it is profitable to prey in the early periods, thereby discouraging later entry. Any number of students. Theory of the firm.
Several students serve as monitors.
L G be the choice of individual I in that team. After all students make their choices, the monitors announce the value of L G for all groups and members calculate their profits accordingly. During the initial periods of play, no communication is allowed among group members, though this restriction is relaxed in latter periods. For the motivation game , the payoff rules are changed. During each period, students must choose either 0 or 1 according to the following payoff rule.