Information Use in a Business Game

Abstract

The use of information is studied by altering the available information for firms playing a business game. It is found that the firms used information about market demand and the exact number of periods that the game is played, but to a lesser extent information in reports. The alterations of available information did not have a significant effect on profits. The decisions in the business game can generally be characterized by dispersion and rigidity, which is similar to what has been observed in real markets.