Modeling of strategic partnership of biotechnological start‐up by option‐game: aiming at optimization between flexibility and commitment

On the survival of biotechnological start‐ups, the effectiveness of real options is proved for, in some degree, overcoming the death‐valley as the initial period until the break‐even point. However, the value of flexibility of a decision making that real options depend on becomes often trade‐off relationship withe the value of commitment at game theory dealing with the competition and cooperation with rivals. This paper examines a possibility of option‐game as an experiemental methodology of optimizing total value between flexibility and commitment, in the context of importance of strategic partnerships for the survival of biotechnological start‐ups.