Simulating Demand in an Independent-Across-Firms Management Game

Abstract

This paper proposes that the demand function of business simulations, especially those of independent-across-firms design, should be composed of equations and algorithms simple enough for players to deduce the parameters from observing results. A set of tested equations and algorithms are discussed accounting for eight basic concepts: trend, stages, randomness, limits, seasonality, pricing, transient effects, and cumulative effects. Combining these simple equations and algorithms results in a demand function of apparent complexity, but because simplicity underlies the complexity, players are faced with the scientific challenge of discerning the underlying simplicity from apparent complexity.