What participants learn
After the session, participants will be able to:
- Explain why, with an identical product, a known common cost and combined capacity above demand, price competition drives margins towards unit cost, and identify which of those three conditions is doing the work
- Distinguish a rival-blind forecast of margin times units filled from a competitive forecast, and construct a decision rule that conditions on what rivals are likely to do
- Evaluate the production quantity as a strategic commitment: what the capacity offered to the market does to rivals' incentives and to your own downside
- Analyze when tacit price cooperation is sustained or unravels in a repeated game with transparent results and a known last round, and assess the legal line between tacit and explicit coordination
Prerequisites
- Margin arithmetic; no game theory is required
Who it is for
An introductory simulation that assumes no prior knowledge of the subject, designed for undergraduate courses. It also works in vocational and high-school programmes and in onboarding sessions.
How a session runs
- The instructor creates a session from the Eureka dashboard and invites the participants.
- Participants play 6 rounds. In each one they submit their decisions and the simulation calculates the results.
- The simulation can be run in English, Español.
- The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.
Decisions participants make
The decisions participants make during the simulation:
- Precio por unidad (€)
- Unidades a producir
What participants track
What participants follow on screen as the rounds go by:
- 🏪 Mercado de Commodity
- Condiciones del Mercado
- Fija tu Precio
- Plan de Produccion
- Revisa tus Decisiones