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The Business Evolution simulation teaches microeconomic concepts by simulating an industry with many competing
firms over time. The model provides a dynamic setting for partial equilibrium analysis of heterogeneous firms.
The simulation allows faculty members to demonstrate how industry parameters as well as individual firm parameters affect the evolution of a virtual industry.
Students can set separate investment rules for the firms to see which rules result in the most profitable firms.
Professors and students can set different parameters to define an industry, set market demand levels and determine how investment decisions are made by a firm. The simulation is then run through a number of periods to see how the industry evolves.
