Authors

Steven Gold

Abstract

Research on business simulation design has been mostly on a sub-system level. Yet the business environment is complex by nature, characterized by interconnected organizational elements with nonlinear feedback loops, and requires a systems approach to be modeled effectively. In this paper a systems-dynamics based interactive model of a business enterprise simulation is developed, consisting of 18 equations. The model draws heavily upon the economic theory of the firm and the expansive body of prior research on the design of business simulations. The focus is on the linkages between the production, cost, revenues, profits and stock market value of the firm. A working model of the recommended system is tested and its empirical properties discussed.

Publication Date

2003

Comments

Note: imported from RIT’s Digital Media Library running on DSpace to RIT Scholar Works in February 2014.

Document Type

Article

Department, Program, or Center

Accounting (SCB)

Campus

RIT – Main Campus

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