Explain why many companies/startups tend to execute real options such as a product launch earlier than optimal. In groups of 2, students wait as success probability improves over time; however, the first to launch and succeed will take all the profit - creating the trade-off between being too early but the first, or ready but too late. Based on a FinTech startup scenario.
In groups of 2, students wait as success probability improves over time (x percentage points per second). When one student decides to launch, a random draw is done with her probability at that point in time to define if it was a success or failure. The first student to launch and succeed will take all the profit; if she fails, the other student is handed out the success.
