Cooperative Business Game with Framing Effect

Abstract

Cooperation between economic entities is necessary for economic activities. For example, supply chain needs cooperation between more than one company. When the firms cooperate enough to build appropriate cooperative relationship, profit is provided mutually. The cooperation is not enough, however, all the firms under cooperation cannot profit and other company may gain profits, or suffer a loss. In such a situation, there can be a same structure as the social problems such as the environmental pollution and an economic problem. In particular, environmental problems become more serious for the firms’ economic activities. For the corporate social responsibility issue, firms must tackle with environmental problems and such a cooperative business situation increases in real world. We introduce design and implementation of cooperative business gaming simulation in which the framing effect is critically appeared. Framing effects is one of the psychological problems argued in economics. Learning by framing effect encourages objective decision for cooperation. The game we proposed here provides students deeper understanding of the importance of appropriate cooperation.