Price Point

Many naive entrepreneurs mistakenly believe that the profit of their competitors detracts from their own profits. This leads them to compete aggressively in price wars that ultimately harm every business involved.

Price Point teaches MBA students how to thrive in a competitive market by developing an understanding that profits are not zero sum. Rather than fighting with their rivals in a price war, players discover that they should branch out into specialized markets.

Players assume the role of entrepreneurs in the water utility business. They do this by laying pipes, setting prices, and trying to win over/retain customers. Profit is the goal, and the one with the most profit wins. However, the game is balanced such that price war strategies lead to ruin. Success comes to those who fully grasp the business principles that drive the core mechanics of the game. Through emergent, exploratory learning methods and a single focused learning objective, Price Point compels the perspectives of the players to evolve.

Price Point has been incorporated into the curriculum of the Action School of Business, an intensive MBA program in Austin, Texas that produces highly focused independent entrepreneurs. Price Point’s unit economics, its model of market segmentation and its strict adherence to Socratic learning are all based on Acton insights.

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