Here are several close reading prompts to help you to read the play more attentively. I recommend taking notes as you read the play and also think about these topics:….
Endowment effect is to be emphasized due to people’s tendency to cherish what they have already obtained. There is a precious lesson from Blockbuster who could have bought Netflix, one of Blockbuster’s significant threats. Due diligence, market analysis, mapping, all sorts of research are efficient methods to avoid such thought error.
Status quo bias
By and large, companies are more likely to stay in a comfort zone, regardless of status quo bias. The start-up should be alarmed that technology is evolving with breakneck speed. Additionally, the fierce competition exists. It is crucial for the start-up company to keep up with new technology, for instance, 5G, artificial intelligence. The management team and investors ought to be more open and generous with suggestions from their own employees and come up with solutions to deal with potential problems.
Intertemporal choice will influence the decision process. Intertemporal choice is another fallacy that start-ups easily fall into, especially in the early stage. As a start-up company, the managers and investors are encouraged to play the long game instead of focusing on immediate interests, otherwise, it may eclipse the business in the long run. Managers and investors should be aware that distant utility outweighs immediate utility. A quick and expedient decision may harm the profits in a detrimental way in the near future.