ManecSim - Managerial Economics Simulation

In this simulation participants manage a simulated firm in which the main decisions are related to pricing and setting of promotional and customer service expenditures for three products. Each product has different cost structures which allows for the analysis of operating leverage. In addition to making decisions, participants may be required to forecast sales at the market and firm levels.
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The firm conducts its operations in a competitive environment. The demand of each product manufactured by the firm is subject to macroeconomics variables, besides the demand variables under firm control (price, promotion, and customer service). Periodic firm reports include as performance variables contribution margin by product and overall firm profitability. Forecast errors, if sales forecasts are required, are also reported. 
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This simulation, besides giving the participants the opportunity to observe the relationship between marketing, production, and finance functions, allows them to experience competition in three different markets and with three different sets of elasticities (price, income and promotion). In one of the products, conditions are set so as to potentially generate a price war. 
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Students are grouped in teams of two to five members. Up to sixteen groups can participate. The simulation can last up to twelve weeks with each week simulating three months of operations.
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A manual and weekly instructions for the students are provided in this website. After each round of decisions reports and financial statements in Excel format are made available to students.
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This simulation can be used in managerial economics, applied microeconomics and pricing courses.

SIMULATION ADMINISTRATION
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The simulation is entirely web based. Students have access to instructions in the website before each round of the simulation.  They enter their decisions in the website and have access to reports in Excel format. The ASDSIM team processes each round and uploads reports with the results.

The reports include a team report and a class report. The team report is comprised of a sales report, forecasts errors, financial statements including income statement,. balance sheet, cash flow statement, and footnotes. Class report allows each team to see their performance relative to the other teams in the class. This characteristic motivates students and is an important factor in generating engagement.

The instructor has access to all decisions and reports. However, instructors don't need to be involved in the administration of the simulation. Instructors may derive any question from students to the ASDSIM team.

At the end of the simulation the instructor has access to a summary report with points assigned to each team.

The simulation is entirely administered through the Web. Professors don't need to get involved in the operation of the simulation and student receive technical support from ASDSIM. To access a sample account and view reports, send an email to promotion@asdsim.com. Please include your name and school.

PRICING
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The cost per student is $25 paid by credit card.


Tentative Schedule

Managerial Economics
Pricing